SIMPLE IRA Mistake

My client opened a SIMPLE IRA for her small company last year. The participants are her and her daughter. She made monthly EE and ER contributions. However, I just learned that she did not inform her Payroll company of the EE payroll deductions and contributed from her Corporate bank account. So, the W2s for her and her daughter did not reflect the EE deductions. Can we amend the 2022 W2s to show the Employee deductions that were supposed to be reported?

Thank you for your assistance.



The owner of the company does not want to ammend the W-2s. Again, it is only her and her daughter. What are her options?

Employee deferrals must be deducted from W-2 wages. If the owner does not correct the W-2s. The contributions are excess deferrals and must be removed along with any earnings.

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