Dave T Posted April 12, 2022 Report Share Posted April 12, 2022 Self Employed t/p hasn't yet filed for 2021 but when calculating her self employment income, I realize her SEP contribution exceeds amount allowed. Her financial advisor had given her the maximum you can contribute but apparently didn't mention that amount is limited to 25% of s/e income. At any rate, is there anything she can do to avoid penalty for 2021? I've never encountered this before. Thank you. Quote Link to comment Share on other sites More sharing options...
BulldogTom Posted April 12, 2022 Report Share Posted April 12, 2022 Get the excess contributions out of the account before you file the return. Tom Longview, CA Quote Link to comment Share on other sites More sharing options...
Hahn1040 Posted April 12, 2022 Report Share Posted April 12, 2022 when did she make the contribution? If made in 2022, she can apply the excess for 2021 to her 2022 contribution 1 Quote Link to comment Share on other sites More sharing options...
Dave T Posted April 12, 2022 Author Report Share Posted April 12, 2022 Yes, in 2022 for 2021 and I was thinking the same thing. Quote Link to comment Share on other sites More sharing options...
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