recharacterizing Simple IRA Contributions to a SEP IRA for previous year or current year
Hello,
After consulting with Tax Advisor, client is informed it would be more beneficial to contribute to a SEP IRA instead of a Simple IRA. Contributions were made into the Simple IRA for 2021 and 2022 already. Is it possible to recharacterize simple IRA contributions from 2021 and 2022 into a SEP IRA? Thanks!
Permalink Submitted by William Tuttle on Thu, 2022-04-07 18:05
No, employer retirement plan contributions can not be recharacterized.
Also, a Simple IRA can be the only employer retirement plan for the calendar year.
Therefore a switch to a SEP IRA must wait for 2023, with a SIMPLE IRA termination notice by 11/2/2022.