SEP IRA Contribution
Hopefully this is a straightforward questions..
A SEP IRA account was established on 3/26/2014. The client forgot to notify the IRA custodian to code the contribution coded for the prior year (2013).
Does this impact IRA custodian tax report – Form 5498? Said another way does the 5498 need to be updated?
Thank you
Permalink Submitted by Jose Morales on Mon, 2015-03-16 15:31
There is no “prior year” coding on a SEP Contribution, other than one that is done only for descriptive purposes on a statement. SEP contributions are reported for the year in which they are made. It is up to the employer to properly identify the year for which it was made on their tax form. The only concern regarding reporting would be that it is coded as a SEP contribution, rather than a regular IRA contribution.