My tax breakdown shows tax penalty for early withdrawal or excess contribution. I rolled over a 401K to an IRA. Why the penalty?

What is the Code in Box 7 of your 1099-R?  Click this link for info on Box 7 Codes on Form 1099-R .

A direct rollover (trustee to trustee) would have a Code G, and be non-taxable without penalty.  An indirect rollover (where you withdrew the funds and rolled over) may have a Code 7.  A Code 2 would indicate an 'Early Distribution' where a penalty could apply. 

TurboTax would then ask if you qualify for a  Penalty Exception.

You may want to delete/re-enter your 1099-R if you believe a penalty is being wrongly calculated.  

Pay close attention to the follow-up questions after you enter your 1099-R.

You can contribute no more than $6,000 ($7,000 if you're 50 or over) to all of your traditional and Roth IRAs.  Any more than that is considered an excess contribution and will be taxed at 6% per year. 

Click this link for more info on Excess IRA Contributions.