I dont understand this questions that asks you on any periodic payments saying did you receive any payments from this retirement account on a regular basis etc-?

[Mtnguy3]

then u choose yes i got regular payments from this account or no i didnt get regular payments from this retirement acccount- its pre checked no but isnt a retirement pension where you get monthly payments a yes answer?

[Bsch4477]

If you get monthly payments check “yes”.

[VolvoGirl]

Even a RMD distribution you get once a year is YES.   Not sure why they ask that.  Do t think it makes a difference.   

[dmertz]

Periodic payments are ones that are received in the form of a regular pension or annuity and are dictated by the  terms of the plan or contract.  If you instead receive monthly payments of an amount that you yourself chose and can change, they are nonperiodic payments.

If you have basis in after-tax contributions to the plan or investment in the contract, the way the taxable amount of each distribution is determined varies whether or not you are receiving periodic or nonperiodic payments.  Normally the payer will report the correct taxable amount in box 2a of the Form 1099-R and you should just tell tell TurboTax that box 2a shows the correct taxable amount.  Only if box 2b Taxable amount not determined is marked or you believe that the amount in box 2a is wrong should you consider using the Simplified Method for calculating the taxable amount.  (TurboTax only offers to use the Simplified Method for periodic payments, which is why TurboTax asks if the payments were periodic.)

[SerottaD]

I also thought this a confusing question.  I also prefer understanding the tax or other future impact of an answer, and I can't seem to dig it out of IRS documents.

It may help to have examples of situations where someone would answer NO.  Is the question simply, "did you have any input into the amount you received?"  If you did have input, the answer is NO?  I just can't imagine getting a payment from a pension isn't a YES answer... so why isn't the question simpler?

[BillM223]

As dmertz said,

Periodic payments are ones that are received in the form of a regular pension or annuity and are dictated by the  terms of the plan or contract.  If you instead receive monthly payments of an amount that you yourself chose and can change, they are nonperiodic payments.

You can take a single large distribution if you want or random smaller ones, or whatever. The point is whether or not YOU chose the size and dates of the withdrawal or the plan/contract does. It seems likely that you were unaware of this possibility.

To answer YES here means that TurboTax can use the Simplified Method to determine the taxable amount of the distribution; answer NO, and TurboTax doesn't. If the Simplified Method is used, then the box 2a entry is ignored.

As for "its pre checked no", a number of TurboTax screens make predetermined entries, whether or not they are correct for your situation. You are responsible for the answer no matter what.

[brianc0610]

I have not seen this listed as it is this year. Is my PERS retirement an Annuity? I get paid on my pension monthly, so I answer yes?

"Annuity information

Did you get periodic payments from this retirement account with California Public Employees' Retirement System on a regular basis, such as monthly, quarterly or annually? Learn more

Periodic payments

Yes

No"

[SerottaD]

deleted

[RogerD1]

@brianc0610 Yes, your pension would be considered an annuity.  Also, since you got periodic payments from the annuity, you would answer Yes to the question about getting periodic payments.

[SerottaD]

@RogerD1   What is the "so what" answering this question?  Is it timing to calculate quarterly taxes (vs. taking a one time RMD distribution every Dec and only owing eat'd taxes once in Jan)

[MarilynG1]

When you receive a 1099-R at year end, TurboTax wants to know if you received monthly distributions (like a monthly pension payment) or if you took a lump-sum amount out of your retirement account, since the 1099-R doesn't indicate that difference.

Tax will be the same either way.  If required, your pension plan sends you your RMD annually and may include that amount in your monthly pension payments, or send it separately (in which case, you'd have a second 1099-R).  

If you are required to take RMD and didn't receive a second 1099-R, you can tell TurboTax that 'Yes, your 1099-R included ALL of your RMD.'

Here's more detailed info on 1099-R and What is RMD?

If you pay quarterly Estimated Taxes rather than having tax withheld on your pension payments, you would include any income reported on your 1099-R's for 2025. 

@SerottaD 

[SerottaD]

@MarilynG1   So Turbotax is asking the extra question just to tease out--belt and suspenders--that the user of the software is reporting all retirement income?  Sort of, "ok, you told us about this one 1099-R. That was your annuity... was there a lump sum version as well?"

And you have this extra characteristic to identify THIS 1099-R is the annuity and THAT one is for your lump sum?

Has no impact on taxes, it's just for clarity, confirmation?

[MarilynG1]

Yes, for the lump-sum distribution, you would not indicate 'periodic payments'.  For the single payment, TurboTax may then go on to ask if it was a disaster or hardship distribution to see if there is any early distribution penalty (if applicable).

If you can be more specific about your situation, we'll try to help further. 

@SerottaD 

[SerottaD]

@MarilynG1   I'm waiting for notice that Home and Business Turbotax is done.  I was incredibly disappointed, when trying to estimate Q4 taxes, that important sections had a "under construction" notice.  So I ended up estimating with a huge margin to avoid underpayment penalties (Somehow in California you can get a refund AND be penalized for perceived missteps on quarterly taxes).  I'd like to file very quickly to get all that money back.

Will Turbotax tell me when this version is completely functional?

[MarilynG1]

Some forms have a sign-up link where you can be notified of availability.  Here's more info on State Forms Availability for TurboTax Business.

@SerottaD