topic Classification of an IRA as SEP or simple in Retirement tax questions

Classification of an IRA as SEP or simple

trberkovich — Thu, 13 Feb 2025 02:24:08 GMT

TurboTax asks whether my IRA has a classification of SEP or simple. My 1099-R form has the line of IRA/SEP/SIMPLE checked on line 7 of the form. How do I enter the correct classification into TurboTax?

Re: Classification of an IRA as SEP or simple

DavidD66 — Thu, 13 Feb 2025 04:24:10 GMT

There is a box to check when you enter your Form 1099 to indicate that it is an IRA/SEP/SIMPLE. In addition, after you finish entering the form, the program will ask you if it was an IRA/SEP/SIMPLE. So, when you enter your Form 1099-R, check the box, and answer Yes.

Re: Classification of an IRA as SEP or simple

trberkovich — Thu, 13 Feb 2025 15:57:25 GMT

There is another screen with individual line items. One line is SEP. A separate line is simple. I tried checking both lines but TurboTax would not accept two checks. I clicked simple for now. But I don't know what my IRA really is, SEP or simple. What do you suggest? As a separate but possibly related issue, TurboTax will not allow me to fill out an 8606 form.

Re: Classification of an IRA as SEP or simple

BillM223 — Thu, 13 Feb 2025 23:12:04 GMT

Simple and SEP-IRAs are two different types of IRAs with somewhat different rules. Look at this link for a brief discussion by the IRS on these retirement accounts.

Normally, each of these are part of a small business. If you never worked for a small business (less than 100 employees), you probably don't have either one, but just a regular IRA.

You should be able to call the administrator who sent you the 1099-R and just ask what type you have.