Updated October 17, 2026. Quick answer: The IRA/SEP/SIMPLE checkbox is covered in the box 7 instructions. The recipient instructions say “If the IRA/SEP/SIMPLE box is checked, you’ve received a traditional IRA, SEP, or SIMPLE distribution.” The payer instructions say when to check it, and they are quoted below.
Form 8606 and Form 8889 for 2025, read line by line: Form 8606 line 7, Form 8606 line 8 and Form 8606 lines 15a and 15b.
What the checkbox is
The form prints the caption “IRA/SEP/SIMPLE”. The payer instructions refer to “the IRA/SEP/SIMPLE checkbox in box 7”. The codes in box 7 are listed on the box 7 codes page, and this page is about the checkbox only. The rest of the form is indexed at Form 1099-R boxes explained.
When it is checked
The payer instructions say: “Enter an “X” in the IRA/SEP/SIMPLE checkbox if the distribution is from a traditional IRA or Roth SIMPLE IRA.” The recipient sentence above names a traditional IRA, SEP or SIMPLE distribution.
The instructions describe the account types. On SEP arrangements they say “Under a simplified employee pension (SEP) arrangement, an employer contributes to traditional IRAs (sometimes referred to as traditional SEP IRAs) or Roth IRAs (sometimes referred to as Roth SEP IRAs) of its employees.” On SIMPLE plans they say “Under a savings incentive match plan for employees (SIMPLE) IRA plan, an employer contributes salary reduction contributions (at the election of the employee), matching contributions and/or nonelective contributions to traditional IRAs (sometimes referred to as traditional SIMPLE IRAs) or Roth IRAs (sometimes referred to as Roth SIMPLE IRAs) of its employees.”
The instructions also say: “References to traditional IRAs generally include traditional SEP IRAs and traditional SIMPLE IRAs, unless otherwise stated.”
When it is left blank
The payer instructions say: “Do not check the box for a distribution from a Roth IRA that is not a Roth SIMPLE IRA or for an IRA recharacterization.” In the recharacterization passage they add: “It is not necessary to check the IRA/SEP/SIMPLE checkbox.”
The Roth IRA codes are explained on the code Q page and the code J page.
Roth conversions and Roth SEP and SIMPLE IRAs
The payer instructions say, in the passage on a Roth IRA conversion, “Also, check the IRA/SEP/SIMPLE checkbox in box 7.” For employer money in a Roth SEP or Roth SIMPLE IRA, the instructions say “Employer matching and nonelective contributions made to a Roth SEP or Roth SIMPLE IRA must be reported for the year in which the contributions are made to the employee’s Roth IRA, with the total reported in boxes 1 and 2a, using code 2 or 7 in box 7 and the IRA/SEP/SIMPLE checkbox in box 7 checked.”
The instructions on the conversion amount say: “Report the total amount converted from a traditional IRA to a Roth IRA in box 2a. Check the “Taxable amount not determined” box in box 2b.” The conversion topic is covered on the Roth conversion taxes page.
Box 2b instructions for IRAs
The payer instructions say “Unless otherwise instructed, distributions from any IRA that is not a Roth IRA must be reported in boxes 1 and 2a. Check the “Taxable amount not determined” box in box 2b.”
The traditional IRA paragraph reads: “Generally, you are not required to compute the taxable amount of a traditional IRA or designate whether any part of a distribution is a return of basis attributable to nondeductible contributions. Therefore, except as provided below or elsewhere in these instructions, report the total amount distributed from a traditional IRA in box 2a. This will be the same amount reported in box 1. Check the “Taxable amount not determined” box in box 2b.”
The recipient instructions for box 2b say: “If the first box is checked, the payer was unable to determine the taxable amount and box 2a should be blank, except for a traditional IRA or traditional SIMPLE IRA.” Box 1 is on the box 1 page, box 2a on the box 2a page and box 2b on the box 2b page.
What the recipient instructions say about IRAs
The recipient instructions say “For distributions from a traditional individual retirement arrangement (IRA) or a traditional SIMPLE IRA, generally the payer isn’t required to compute the taxable amount.” and then “See the instructions for your tax return to determine the taxable amount.” The same paragraph continues: “If you’re at least age 73, you must take minimum distributions from your IRA (other than a Roth IRA or Roth SIMPLE IRA).” The required minimum distribution topic is covered on the required minimum distribution page.
For Roth IRAs they say “You must compute any taxable amount on Form 8606.” Form 8606 is covered on the Form 8606 page.
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Related pages
A page on a wrong 1099-R is the page on a wrong 1099-R. For inherited accounts, see the inherited IRA rules page.
Edition and box numbers
The primary read for this page is the 2025 edition of Form 1099-R, the form received in early 2026 for tax year 2025. The 2026 edition was the one irs.gov served as current on 2026-10-17, and this box changed in it. The 2026 instructions say “We renumbered box 7 and the “IRA/SEP/SIMPLE” checkbox to boxes 7a and 7b”. In the 2026 recipient instructions the sentence reads “traditional IRA (other than a Trump account), SEP, or SIMPLE distribution”, and the 2026 form adds a separate “Trump account” checkbox as box 7c. The 2026 payer instructions for box 7b also add “Do not check the box for a distribution from a Trump account”. Check the tax year printed on the form you received and use the box numbers on that form.
Common mistakes
- Expecting the box to be checked for a Roth IRA distribution. The payer instructions say “Do not check the box for a distribution from a Roth IRA that is not a Roth SIMPLE IRA”.
- Treating a traditional IRA form with box 2a equal to box 1 as an error. The payer instructions say to “report the total amount distributed from a traditional IRA in box 2a.”
- Forgetting the Roth conversion instruction. The payer instructions say “Also, check the IRA/SEP/SIMPLE checkbox in box 7.” for a conversion.
Related: 1099-R box 7 codes, Form 8606, Roth conversion taxes, inherited IRA rules, and required minimum distribution.
Sources
- Form 1099-R (2025) with Instructions for Recipient: IRS archived PDF (irs.gov)
- Form 1099-R (2026) with Instructions for Recipient: https://www.irs.gov/pub/irs-pdf/f1099r.pdf
- 2025 Instructions for Forms 1099-R and 5498: IRS archived PDF (irs.gov)
- 2026 Instructions for Forms 1099-R and 5498: https://www.irs.gov/pub/irs-pdf/i1099r.pdf
Read from the IRS documents linked above on October 17, 2026. General information, not tax advice. Your own facts decide the outcome, and a preparer, the account provider or the IRS is the right place to confirm anything consequential.