I miscalculated and contributed an excess to my SEP-IRA in 2000. but my total contribution to my SEP will be under $2000. can I take it out of the SEP-IRA and set up a regular IRA instead ? or can I contribute the excess to a regular IRA? If I understand you, your total SEP contribution was less than $2,000, and you made no other IRA contributions for year 2000. Actually, you don't have to make any changes to your accounts. A SEP IRA is a traditional IRA, and it can receive both SEP contributions from you while wearing your employer hat and regular contributions from you while wearing your employee hat.In short, subtract your allowable SEP contribution from the total contributed. Subtract the result from $2,000, and you have the amount of the traditional IRA contribution you can still make for year 2000. (All this assumes that you're under 70 1/2 and had at least $2,000 of earned income.)When you file your 2000 return you'll show the correct amount of SEP contribution on line 29 of your 1040 and the ultimate amount of the regular contribution on line 23 of the 1040 or line 1 of Form 8606.Phil MartiVITA Volunteer
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