I am adding a1099-R. I have been asked whether certain situations apply to me. What is a simple ira with more than two years of participation.

A SIMPLE IRA (Savings Incentive Match Plan for Employees) with more than two years of participation means you have been contributing to the plan for over two years. 

This distinction is important because it affects the tax treatment of withdrawals.

Explanation:

• First Two Years: If you withdraw funds from a SIMPLE IRA within the first two years of participation, the additional tax on early withdrawals is 25% instead of the usual 10%
• More Than Two Years: After two years of participation, the additional tax on early withdrawals drops to 10%, similar to other IRAs.

Action:

• Check the Box: If you have been participating in the SIMPLE IRA for more than two years, you should check the box for "SIMPLE IRA with more than two years of participation."
• Unsure? If you are unsure, check the account start date with your plan provider to confirm your participation duration.

Informational links:

• IRS SIMPLE IRA Plan FAQs
• IRS SIMPLE IRA Plan