....And the answer " 2) did something else(cashed it out).” is the correct one (actually it's “I did something else(cashed it out, etc." in my desktop software). You received money monthly...and cashed...OR...put it in your bank account, and used it as if it was cash for living expenses, and most anything under the sun.
You should NOT select ...1) “moved the money to another retirement account” That first selection was only for rollovers or transfers into another tax protected/deferred retirement account, like an IRA or 401k or ROTH IRA or ROTH 401k or TSP or Roth TSP.
____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*
