Missed the deadline for a SEP Contribution

Submitted by John Nielsen on Wed, 2023-04-19 15:52

Whats the process for making a missed SEP IRA contribution after the deadline and after your taxes have already been filed?

Thank you

Permalink Submitted by Alan - IRA critic on Wed, 2023-04-19 17:15

If a 2022 return has been filed claiming a SEP contribution deduction and that contribution is not made by the deadline, the return must be amended to remove the deduction. There is no way to make a late contribution for 2022.
That said, if the taxpayer made a contribution in early 2022 which was deducted as a 2021 SEP contribution, the taxpayer could apply that contribution to 2022, but would then have to amend the 2021 return and might result in other problems such as underpayment penalties for 2021. But if the marginal rate was much higher in 2022 then 2021, this might be worth considering.