corrected sep contribution
I have a client who made a Sep contribution April of 2015 for 2014 tax year. The deposit was coded incorrectly by institution and went in for 2015 tax year. They corrected the account statement by showing a prior year contribution, but we were told that the 5498 would not be corrected since it is a SEP all contributions are listed on the 5498 during the year it was contributed. I believe this is a correct statement but wanted confirmation. Thanks
Permalink Submitted by Alan - IRA critic on Fri, 2016-04-08 17:34
The statement is correct. A SEP contribution reported on a 5498 is reported for the year of the contribution, which may or may not be the year the contribution is reported on Form 1040. On the other hand, a TIRA contribution reported on a 5498 is reported based on the year the contribution is assigned to. A TIRA contribution made in April for the prior year will be reported for that prior year, not for the year in which it was actually made as in the case for SEP contributions.