I have a client that was approved for social security disability in 2023 and received benefits dating back to 2022.  She is 49 years old and was most recently employed by the U.S. Postal Service.  She withdraw all of her thrift savings plan retirement and the 1099-R was issued with code 1 in box 7.  It appears that the Postal Service has not deemed her as disabled even to this day.  Is there any basis for claiming disability on form 5329 even though the 1099-R has a code 1 in box 7 or is she stuck with the 10% penalty?

Thanks.