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I withdraw my earlier "beans" assessment. Whoever told you that you must withdraw $1,000 and the earnings on it was correct. You have until 4/15/2003 to do so and will owe the 10% premature distribution penalty on only the earnings (if you're under 59 1/2). You may be able to get around this, though.

If transactions 1 and 2 were both with the same custodian, get in touch with them and see if they will label transaction 1 as a SEP contribution. If they will, then everything will be OK. If they won't, I don't see any way around the withdrawal of the excess contribution.

pmarti, they did it! The decision to treat that $1000 as a SEP contribution took two days to make. The brokerage's IRA department built a case, and a representative and a supervisor pulled it off. I've added you to my Favorite Fools and recommend your posts. Thank you!
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