Change in tax law regarding SEPP withdrawals?

[DIY_Tax_Person]

I have been receiving systemic periodic payments for over 5 years now from a non-qualified (after-tax money) variable annuity (I'm under age 59 1/2). The IRA/SEP/SIMPLE box is not checked on my 1099-R.

This year, for the first time in TurboTax, after I entered all of the information from my 1099-R, TurboTax was saying that "These situations may lower your tax bill". One is "Equal periodic payments". I entered the amount that I receive every year and that indeed lowered my taxes. Now I'm wondering 1) Am I really supposed to enter the amount that I receive each year? And 2) Is this a NEW tax law for 2019 that allows you to lower your tax bill, because I don't ever remember seeing this pop up in TurboTax before?

A few years ago I switched from Sun America to Vanguard under 1035 exchange. This allows you to continue your SEPP without penalty. So I'm wondering if Vanguard is leaving the IRA/SEP/SIMPLE box unchecked by mistake and/or that I have been over-paying taxes all of these years.

[JulieS]

No, the substantially equal periodic payments (SEPP) exception is not new. It applies equally to IRAs, SEP accounts and 401(k) plans, etc.

If your annuity is not qualified, you should not have the IRA box checked on your 1099-R form.