Someone else had a similar post and ended up deleted their form 5329 before filing, but I am including the question/post here for others that may have the same issue. My parents have two 1099Rs for IRAs and two for 1099Rs pensions. They are both over 59 1/2, Box 7s both show ONLY a "7" normal distribution for the pensions. There are no codes. They have been taking these distributions for years. This year, TT is generating a Form 5329 that has Line L completed with the amount of the respective amount in Box 1 of the 1099R. Box 1 of the form 5329 is blank. Line L is for "incorrect early distribution". The IRS instructions for this Form state that is to be used when code 1, J or S are included in Box 7 of the 1099R. They do not have any of these codes. Box 2 of Form 5329 "Early distributions not subject to additional tax..." has the exact amount from Line L above along with code "12." So, the form nets to nothing additional being taxed, but it still gets generated and is supposed to be filed along with the return. This is being generated in error unless there is something being done on the input side to trigger it. Turbo Tax needs to fix it.
