The 8915E takes away the 10% penalty.  If you choose to pay the taxes on all at once, you check the box on the 8915E below Line 5 to opt out of the 3 year spread, but the 8915E still waives the penalty.

Here is your earlier topic on this internet forum: https://proconnect.intuit.com/community/proseries-tax-discussions/discussion/1099-r/00/139119

You might be getting email notifications that your topic got updated, but it's not really an email system. We are on the web.

Your first topic was for the 1099-R, which is not wrong. It is for the money out, and they use the code that applies.

Then, it's up to the taxpayer to know what they did that qualifies for whatever treatment applies.

So, the 10% early withdrawal penalty would be waived if the person took the funds under what qualifies for CARES Act (covid) disaster. Have you read the rules? There are eligibility and qualifications to meet.

Then, the 8915 is a series of Disaster forms, and -E = 2020 disasters. That is for how you want to handle tax treatment.

You have to confirm the taxpayer qualifies and that the distribution is eligible.

Otherwise, it's just a normal taxable early distribution, which is why you are told in the original topic you don't change the 1099-R. It's accurate.