My client received a 1099R for 2022.  My client turned 60 years old in November 2022.  The gross distribution is $20,000 and the taxable amount is $16,696.96.  Box 5 (contribution) is $3,303.04.  The distribution code is 1 (Early distribution with no known exception) D (annuity payment from non qualified annuity). I researched non qualified annuity and it said no 10% penalty if over 59 1/2.  He is getting charged with the 10% penalty.  I am not sure why since he is over 591/2.  Any thoughts?

Thank you in advance