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New Member
posted Jan 20, 2025 12:04:44 PM

Should I mark that my retirement contributions went to a "SIMPLE Roth IRA plan" even though those are two different things? I have a simple IRA plan, not a Roth...

I can't find anything that even mentions a "Simple Roth IRA." Does it even exist?

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3 Replies
Level 15
Jan 20, 2025 12:34:00 PM

No, you should not mark that.

 

The SECURE 2.0 Act of 2022 made changes to the tax code that permits SIMPLE contributions to be made to a SIMPLE Roth IRA account.  Since the contributions were not made to such an account, you should not say that they were.

New Member
Jan 20, 2025 3:19:13 PM

Thanks for the clarification! Do you have more information on this topic? Just scanning this document, and I still don't see anything referencing a "Simple Roth IRA." I guess Section 601 is the part in question?

Level 15
Jan 20, 2025 4:15:05 PM

Yes, section 601 is the section of the SECURE 2.0 Act that created SIMPLE Roth IRA accounts.  The IRS has issued guidance saying that such a contribution is to be reported by the employer on Form W-2 as if it was a regular SIMPLE IRA contribution excluded from wages followed immediately by a taxable Roth conversion to a SIMPLE Roth IRA account, reported on Form 1099-R.