Hello,

One of our clients each put $4000 into their Roth IRAs for 2007. Due to their income, they should not have put any money into their Roths. One of the spouses also has a SEP. So, our custodian did a ‘check deposit correction’ to move the contributions to the 2007 Roths to the 2007 SEP. My question is this: Will we still have to file this as an excess contribution (and pay taxes on the gains) or will this pass as an administrative correction?

Thanks in advance

Adam