Ok sorry if I'm sounding stupid here. Trying to understand this all. My husband had to retire under disability at age 59 in June 2019, 2 weeks shy of his 60th birthday . When Turbo ask "Were you under your minimum retirement age when you received the distribution?", what does this mean exactly? How do I find out? Am I answering Yes or No? Also, since he was then retired under disability, my husband received a monthly check for his retirement and also a check from SS for disability (i believe). Then Turbo ask "Any periodic payments -- did my husband receive payments from this retirement account on a regular basis, such as monthly, quarterly, annually". I'm going to assume I should answer "Yes" since he was receiving monthly deposits correct? Can't ask my husband because he passed away last year :( I now continue receiving his retirement for few more years, but not his SS until I reach age 60 for survivor death benefits, but that's different topic. Confused as hell!
You would need to either refer to the retirement plan agreement or ask the plan administrator what the minimum retirement age is for the plan. TurboTax asks the question because disability distributions (code 3 in box 7) received before the minimum retirement age are treated as wages and are therefore treated slightly differently on the tax return.
Yes, these would be periodic payments. TurboTax asks this as part of the information necessary to determine if one might need to use the Simplified Method for determining the taxable amount, but if the amount shown in box 2a of the Form 1099-R is correct, one should not be using the Simplified Method to calculate anything different.
"When Turbo ask "Were you under your minimum retirement age when you received the distribution?", what does this mean exactly? How do I find out? Am I answering Yes or No? "
What this means is was your spouse under the minimum retirement age FOR HIS PLAN when he received this contribution? That's because disability payments are treated differently when they are "early" (i.e., before normal retirement) as opposed to when they are after "normal" retirement. Of course, every retirement plan has its own "early" date, which is why we have to ask.
"I'm going to assume I should answer "Yes" since he was receiving monthly deposits correct?" - Yes.
Please accept our condolences on your loss.