SEP IRA Recharacterize
Am I correct that you cannot recharacterize SEP contribution to an IRA or Roth? From what I read, you cannot recharacterize employer contribution as participant contribution to an IRA or Roth. You have to remove as excess.
Am I correct that you cannot recharacterize SEP contribution to an IRA or Roth? From what I read, you cannot recharacterize employer contribution as participant contribution to an IRA or Roth. You have to remove as excess.
Permalink Submitted by Alan - IRA critic on Thu, 2017-04-06 23:47
Yes, these contributions cannot be recharacterized from employee to employer or vice versa because different entities are making these contributions. The excess must be removed or be applied to a later year after paying the excise tax for the excess year.