Traditional IRA, SIMPLE IRA, or SEP IRA

If IRA/SEP/SIMPLE is checked in box 7 of Form 1099-R, ask the taxpayer:

• Was this a distribution from a traditional IRA?
• Were the contributions deducted from income in the year they were made?

If the answers to both questions are yes, the entire distribution is taxable. Report the distributions on Form 1040, line 15b. It is not necessary to enter the amount on line 15a.

If the distribution was from a traditional IRA but the contributions were not deducted in the year they were made, the distribution is partially taxable and out of scope for the volunteer program. In that case, refer the taxpayer to a professional tax preparer.

Distributions from a SIMPLE IRA and from a SEP IRA are generally fully taxable. These plans are out of scope for VITA/TCE.