A S-Corporation made excess SEP contributions for its shareholder (no other shareholders or employees) for 2020 and 2021. The excess contribution for 2020 was $55,000 and made in January 2021; the 2021 excess contribution was $57,000 an made in June 2021.

We calculated the amounts to be withdrawn based on Notice 2000-39 and Reg. 1.408-11; there was a loss on both contributions. The funds were deposited into the business’ bank account. The 2020 return is being amended to remove the deduction related to the excess that was withdrawn.

For the 2020 excess contribution that was withdrawn, what form and tax should the S-Corp pay? Would it be Form 5330 and a 10% tax? Or would Form 5329 and the 6% tax apply?

For the 2021 excess contribution, we believe there is no special reporting since it was withdrawn by the due date of the return and the return has yet to be filed (currently on extension). Is this correct?

Thank you for your time and consideration.