Is the Distribution From My Traditional, SEP or SIMPLE IRA Taxable?


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This interview will help you determine if your distribution from a traditional, SEP or SIMPLE IRA is taxable. This topic doesn't address the return of an IRA contribution or the return of a prior year's excess contribution.

Information You'll Need

  • Whether the cost basis has been recovered. Your cost basis consists of previously taxed amounts. Previously taxed amounts include nondeductible contributions (or amounts that were taxed when rolled over).
  • If a contribution was made in the same year as the distribution, whether a deduction, if taken, was limited.

The tool is designed for taxpayers who were U.S. citizens or resident aliens for the entire tax year for which they're inquiring. If married, the spouse must also have been a U.S. citizen or resident alien for the entire tax year. For information about nonresidents or dual-status aliens, please see International Taxpayers.

Caution: For 2020, this topic doesn’t include the recently passed legislation that provides income attributable to a 2020 qualified disaster distribution may be included in income ratably over three years. Until the update can be made, see Division EE - Taxpayer Certainty and Disaster Tax Relief Act of 2020 within H.R. 133 – Consolidated Appropriations Act, 2021 PDF.


Conclusions are based on information provided by you in response to the questions you answered. Answers do not constitute written advice in response to a specific written request of the taxpayer within the meaning of section 6404(f) of the Internal Revenue Code.

Estimated Completion Time: 15 minutes

Please Note: After 15 minutes of inactivity, you'll be forced to start over.

Caution: Using the "Back" button within the ITA tool could cause an application error.