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Financial Planning / Tax Strategies
|Subject: Re: (SEP)IRA - Reporting Year of Contribution||Date: 2/26/2001 3:24 PM|
|Author: ptsurmr||Number: 47217 of 122622|
I got the same story from my broker (Schwab), (they even sent me a special pamphlet to explain the situation) Apparently, the IRS reporting rules are different for SEP-IRAs. They report the year in which the contributions are made. Just keep your own records straight and you should be fine. (or am I being overly optimistic?)
krkistler, thanks for letting me know I am not alone. As a matter of fact, the broker rep (IRA specialist) I spoke with over the phone mentioned that he gets asked this question 25 times a week!
I have no real problem with keeping my records straight. I would prefer the custodian report my contributions as I have requested. However if the IRS allows them to report my contributions as the custodian suggests, and simultaneously allows me to report my contributions for the year I intend, then I suppose this is ok.
The big question I have is: If the custodian is correct, and they and I can each report the contributions for different years, how does the IRS reconcile these numbers? Do they even try?
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