Form 5329

Hmmm.  Check for any typos in the dates of birth for your parents.  

Codes 1 and 2 in box 7 on your Form 1099-R would indicate that the distribution was for an individual who was under the age of 59 1/2, so that could be where the error is comming from. 

Thanks everyone for your suggestions.  It appears that I encountered a bug in TTax.  I had forgotten a life insurance policy that my  parent's collected last year.  Although not taxed, TTax does ask about life insurance when you apply for the homestead credit in Michigan.  When I checked the life insurance box that is when this form 5329 showed up.  I tried deleting the 1099-R that was associated with the amount.  Form 5329 remained.  I tried not applying for the homestead credit.  Form 5329 remained.  I tried unchecking the life insurance policy in the list of questions it asks - I could not uncheck it.  I could check and uncheck every other option, but not this one.  I took drastic measures.  I deleted the TTax file and started all over again.  I did not apply for the homestead credit at all, since I knew my parents no longer qualified.   Then everything worked fine. 

I used to be able to  get hold of someone at TTax - usually they are interested in such things.  But I only got an automated response.  Anyway, the taxes are done and filed.  Thanks for your help and suggestions.   

Gus,

Whew, not ideal, huh?  I've reported this to the powers-that-be for assessment.  I think you should consider using a desktop version next year.  In that way you can examine, edit and/or delete forms directly if you want.

One of my TT connections pointed me to the article

https://ttlc.intuit.com/turbotax-support/en-us/help-article/tax-forms/view-delete-forms-turbotax-online/L7SZhwCHv_US_en_US?uid=lggkw8nv 

which is directions for deleting unwanted forms from within TT online.  Is that what you tried?