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I don't understand "What did you with with IRA? I didn't do anything except set up monthly payments.
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TurboTax is asking if you put the funds you received back into another retirement account or if you kept the money and used it for something else (food, mortgage, 'round-the-world cruise, etc.). Your answer affects the tax treatment.
It sounds like you would select "Did something else with it" since you didn't put it back into another retirement account.
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