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Retirement tax questions
The code 7 normal distribution is usually people taking regular distributions. Periodic distributions doesn't necessarily mean every month. The question at this point, are they periodic distributions that qualify or not?
From Common questions and answers about pension subtraction
What is a periodic pension payment?
Periodic payments include substantially equal payments made at least once a year over the life of the employee and/or beneficiaries or for 10 years or more.
The program does ask if it was periodic payment or lump sum and what did you do with it. All of those questions are in the federal section. There is one question that is automatically checked none of the above and it would be easy to hit continue and go right past it.
So, if it is a periodic payment based on your 401k from a private employer, you qualify for the benefit. If not, you can amend.
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