Classification of an IRA as SEP or simple

Forum|Forum|1 year ago
February 13, 2025
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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?

Best answer by BillM223

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.

DavidD66

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.

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trberkovichAuthor

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.

BillM223Answer

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.

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"