@MsSdotjones
Yes, it effectively falls under #2....cash, or money monthly into your bank account, or a regular check is (effectively) all the same things.
Yeah, perhaps TTX needs to extend the sentence to add a few other handwaving payout options to # 2 to cover everything .... to avoid such confusion.
______________________
Essentially, they only need to know if you:
1) rolled over the $$ to another Retirement account (401k, IRA etc)
2) got the money in some way and didn't do #1
____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*
