Margaret CPA in OH Posted March 8, 2017 Report Share Posted March 8, 2017 Client accidentally contributed $26 more into her SEP than allowed. When discovered, quickly, excess was repaid plus 9 cents interest. It isn't reported on 5329 but I think a 6% excise tax is due - all of $1.56 - but that entails Form 5330 but not in the 1040 series. Forget about this? My research seems to say that Fidelity (in this case) should issue a Form 1099R but I doubt that will happen for $26. Ideas? The $26 is 7% of the contribution allowed. Geez, I hate these small issues that eat up so much time. 2 Quote Link to comment Share on other sites More sharing options...
Catherine Posted March 8, 2017 Report Share Posted March 8, 2017 Your client may get a 1099-R next year for this - or maybe not. They (the IRS) keep telling us not to bother with amendments that change taxes by less than $50, so unless/until I got a 1099-R, I'd ignore it. But that's just me, and I spent the morning at the dentist, have a splitting headache, and there's not much right this minute that I don't feel like ignoring... Quote Link to comment Share on other sites More sharing options...
Margaret CPA in OH Posted March 8, 2017 Author Report Share Posted March 8, 2017 Thanks, Catherine. Seems like a good plan. Your plan should be to go home, be good to yourself and start fresh tomorrow, even later today if the headache is gone. I begin a crown process March 21, day after my birthday. I intend to be very good to me that day. 1 Quote Link to comment Share on other sites More sharing options...
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