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Level 1
June 6, 2019
Solved

I have an inherited ira. The simple box has been checked in previous years but not this year. Do you think they made a mistake? Is the simple ira taxed differently

  • June 6, 2019
  • 1 reply
  • 25 views
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Best answer by MichaelL1

If it was checked in prior years and not this year (and you did not do a roll-over) it appears they made a mistake.

It is still taxed the same way in the return.  On the Form 1040, it may on line 16 versus line 15. Either line you pay ordinary income tax on it. 

1 reply

MichaelL1
MichaelL1Answer
Level 15
June 6, 2019

If it was checked in prior years and not this year (and you did not do a roll-over) it appears they made a mistake.

It is still taxed the same way in the return.  On the Form 1040, it may on line 16 versus line 15. Either line you pay ordinary income tax on it.