1099-R Under 59.5

[taxgirl0216]

I recently obtained a new client and was looking over their 2019 tax return and saw that they took a distribution from their retirement account in 2019. The client is 47 years old. The surprising item is, that the 1099-R was coded 7 for a normal distribution. Therefore, there was no 10% early withdraw penalty on the tax return. Why would this be a code 7 if the client is under 59.5?

[TaxGuyBill]

It could be a mistake, but in the Instructions it shows it could be "to report a distribution from a life insurance, annuity, or endowment contract and for reporting income from a failed life insurance contract under section 7702(g) and (h)."

https://www.irs.gov/pub/irs-pdf/i1099r.pdf#page=17

[abctax55]

Maybe distributions under 72(t) ?