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.