SEP IRA Recieved and coded for wrong year
Individual made a SEP contribution for 2007( this was memoed on the check), however it was not recieved by custodian(Per Custodian) until April 2008. Individual said they mailed it by or prior to the 15th. They later made 08 SEP contribution thus both were attributied to 08. Any recourse since the accountant coded it for 07 and it was applied buy custodian for 08?
Permalink Submitted by Anonymous (not verified) on Wed, 2009-10-28 00:25
If you notice, the 5498 to the IRS (May 2009) only reports the amount not the year the employer contribution was applied for. Remember, these so called “employer contributions” are reported on a calendar year basis (Jan 1 – Dec. 31), even though contributions can be made until the plan’s tax filing deadline (April 2008 or later). So you will always find contributions show on the following 5498 for the prior tax year. That is what the IRS created. The IRS does not see the custodian’s internal coding system, so it is irrelevant what year they attached to it. The only problem could be that if the person maxes out his/her contribution, the custodian’s platform may not be able to put it into the system, since it is programmed not to allow an over contribution for 2008.
So, as long as the reporting matches the amounts on the tax return, there should be no problemo…..
If the person is a stickler and wants to fight with the custodian, he/she probably has a good case, but the 5498 will [u]not[/u] change one bit.
pmk