SEP IRA Contributions
I was just informed that my Client has over funded her SEP IRA for 2023. Can she pull out excess SEP IRA contributions without penalty as long as you do it before the tax filing deadline?
I was just informed that my Client has over funded her SEP IRA for 2023. Can she pull out excess SEP IRA contributions without penalty as long as you do it before the tax filing deadline?
Permalink Submitted by Alan - IRA critic on Wed, 2023-12-06 18:11
Yes, the process is the same as for a traditional IRA excess contribution. Any gains are taxable in the year in which the SEP contribution was made but there is no longer a 10% penalty on those gains.