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Author: krkistler One star, 50 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 123538  
Subject: Re: (SEP)IRA - Reporting Year of Contribution Date: 2/26/2001 10:19 AM
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I recently moved my SEP-IRA from one broker to another. Over the last couple of years I have made my final SEP-IRA contribution in Jan or February of the calendar year following the current tax year. This year was not different.

In February 2001 (before filing my year 2000 tax returns) I made my final tax year 2000 contribution. I included my customary note to the broker indicating that I would like this contribution to count as a tax year 2000 contribution, and to call me if they had any problems.

Well, previous broker never had a problem. My statement would indicate the contribution for the preceding calendar year. New broker, however, says that they will not do this, nor is it necessary. New broker indicates that they will report this contribution to the IRS as having been received in 2001, and that they do not know how the IRS will become aware that it is really for my tax year 2000 (something about form 5498, pg 43, indicates that the broker is obligated to report the deposit in the calendar year it was received).

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?)

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