Will the error On form 1099 R box 7 the (distribution code) of a 1 instead .of 7 cause me to pay more tax.

Since the age of 59 1/2 was reached before the Series of substantially equal periodic payments based on life expectancy were started why would the code  be 1  and not 7 be entered from the beginning of the 1 St year payments were made?

You would have to ask the issuer of the 1099-R that question.  Perhaps they have your age listed wrong or made an error.   You can ask them for a corrected 1099-R or just use the penalty exception.

BTW:  The exception for being over age 59 1/2 is "other" on the exception screen - see the blue "explain this".

Yes, if you have a code 1 in Box 7 of your 1099-R instead of 7 (normal distribution), you may have to pay 10% early withdrawal penalty.

There are exceptions to the 10% tax penalty for early distributions:

• Death, or total and permanent disability
• Series of substantially equal periodic payments based on life expectancy
• Qualified first-time homebuyer distributions up to $10,000
• Qualified higher education expenses
• Certain medical insurance premiums paid while unemployed
• Unreimbursed medical expenses that are more than a certain amount of your adjusted gross income
• IRS levy
• Certain distributions to qualified military reservists called to active duty

Unless you qualify for an exception, you’ll pay a 10% additional tax penalty.

In addition, being over the age of 59 1/2 is also an exception. Not all of the above exceptions apply to a pension or employer plan.