Retirement tax questions

OPM does that.  They throw in a word that is supposed to be helpful but confuses people when filing their tax return.  There is no such code 7 - NonDisability.

The Code of 7 in Box 7 mean a Normal Distribution, so you select the code of 7 in box 7.

 

If you are under the age of 70 1/2 where asked What you did with the money? select Did something else with it.  Assuming you did NOT move the money to another retirement account.

 

If you are age 70 1/2 or older then where asked Was this withdrawal an RMD? select Yes and then All was an RMD.  When you are age 70 1/2 or older All of your pension income is an RMD.