In each of 2020/2021/2022, client made contributions to a SEP from self-employed K-1 income. The business from which this income was derived did not have a SEP. Instead, he contributed to a previously established SEP associated with a different schedule C business. So, I believe the contributions are erroneous.

This error repeated in 2021/22, was discovered this year.

Total excess contributions are $116k, plus earnings.

Is this eligible for self-correction? What penalty rate would apply – and is there any way to avoid or reduce?

I assume he has to have his 20-22 tax returns amended as well…