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SEP IRA contribution oops

December 21st, 2013 at 12:50 am

I just realized that a week or so ago I accidentally contributed more than I should have to my SEP IRA. You can contribute up to 20% of what you earned, and I contributed 25% ($1100 vs. $887). This is for my freelance work, what I've managed to do in 2013 when I'm not working my other job.

Do you think the IRS will catch this on my low income tax return, perhaps by some automated system? I'm wondering if i should go to the trouble of trying to undo it, or having to file some special form possibly to do so.

Ugh.

Posted in Uncategorized | 4 Comments »

4 Responses to “SEP IRA contribution oops”

  1. creditcardfree Says:
    December 21st, 2013 at 01:00 am 1387587650
    1387587650

    I would call the company you invested this money with and tell them the amount of excess contribution, they should be able to do it all over the phone and return your funds. You will then get a form from the IRS showing it was an excess contribution. And yes, I would take care of it, rather than waiting to see if it caught.

  2. creditcardfree Says:
    December 21st, 2013 at 01:01 am 1387587711
    1387587711

    Excuse me, an IRS form 1099_R from your investment company.

  3. Petunia 100 Says:
    December 21st, 2013 at 01:07 am 1387588033
    1387588033

    Get it done by the end of the year to avoid penalty. Smile

  4. SicilyYoder Says:
    December 21st, 2013 at 09:07 pm 1387660050
    1387660050

    I would call the ocmpany and tell them the error to have them send you the 5% back. if you get audited, you're fine.

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