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m-c-hicks
New Member

my 1099 r was inherited ira. the form is marked ira/sep/simple. the questions on this program ask if it was sep ira or a simple. how do i know?

 
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2 Replies
MaxA1
Expert Alumni

my 1099 r was inherited ira. the form is marked ira/sep/simple. the questions on this program ask if it was sep ira or a simple. how do i know?

You will have to inquire with the financial institution that handles the account to verify whether the IRA is a SEP IRA or Simple. SEP IRA means only the employer can contribute to the plan and Simple IRA means that both the employer and employee can contribute to the plan.

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dmertz
Level 15

my 1099 r was inherited ira. the form is marked ira/sep/simple. the questions on this program ask if it was sep ira or a simple. how do i know?

If on the page that asks, "Do any of these situations apply?" you marked the box to indicate that this distribution is from an inherited IRA (such a Form 1099-R would have code 4 in box 7), it makes no sense for TurboTax to ask if the distribution is from a SEP or SIMPLE IRA.  The answer doesn't matter and has no bearing on how the distribution is taxed.  Distributions from any kind of inherited IRA are penalty-free.

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