Annuity withdrawal coded as 1D at age 61. Mistake?

I'm 61 now. More than 10 years ago, I started a SEPP withdrawal program on my non-qualified variable annuity. What I don't understand is why the insurance company is still coding these annual withdrawals as 1D. Code 1 indicates an early distribution. In TurboTax, it appears as though I'm paying higher taxes because of this determination. Since I'm over the age of 59 1/2, shouldn't the code be 7D? Did the insurance company make a mistake?

This year, I also took out a manual withdrawal and the insurance company correctly coded it as 7D.

Should I end the SEPP withdrawals and just start taking out manual withdrawals instead in order to save on taxes? Is there a penalty for ending a SEPP withdrawl program after age 59 1/2?

NOTE: This is my 3rd try to get this posted. What's wrong with this forum?

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