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...

Forum|Forum|1 year ago
January 20, 2025
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I can't find anything that even mentions a "Simple Roth IRA." Does it even exist?

dmertz

Employee

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.

jwilliamoutlawAuthor

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?

dmertz

Employee

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.