SEP Correction
Hello-
Client made SEP contribution of $3,000 in October of 2018 for the 2017 tax year but never filled out a 5305-SEP even though it was requested by the custodian where he established the account. He deducted the contribution on his 2017 tax return which pushed income low enough that he could make full Roth contributions. In 2018 income did not allow Roth or deductible IRA contributions. He converted the SEP to a Roth in 2018.
Thoughts? Can he fill out the 5305-SEP now? Any corrective action needed?
Permalink Submitted by Alan - IRA critic on Mon, 2021-12-13 22:40
Were there any affected employees?
Permalink Submitted by IRAQuestion5 on Mon, 2021-12-13 23:22
No – no employees.
Permalink Submitted by Alan - IRA critic on Tue, 2021-12-14 00:03
If the SEP no longer exists, no need to complete the form now, but client should be sure to complete it if SEP contributions will resume in the future.