Question

Early retirement distribution takenbecause no longer employed?

is this an early distribution if no longer employed

Possibly! The issue isn't if you're employed, it's how old you are.

If you take monthly distributions, you can avoid the penalty, but a lump sum may be subject to the 10% penalty.
"Early withdrawal from an Individual Retirement Account (IRA) prior to age 59½ is subject to being included in gross income plus a 10 percent additional tax penalty."
What if I withdraw money from my IRA?

However, there can be exceptions. For more information, see Hardships, Early Withdrawals and Loans.