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Greetings, Marcie4re, and welcome. You asked:

<<Can someone please explain to me what consequences there might be for over-funding a SEP-IRA? I want to contribute to my SEP-IRA, and I want to start the contribution for the 2000 tax year early (so I can start earning as early as possible). What penalties or other consequences are there when someone "over-funds" their SEP? I've never heard the answer to this, only that it's not a good thing. Can someone please explain?>>

You will find the explanation in Chapter 4 of IRS Publication 590 (Individual Retirement Arrangements) available for download at Basically, you will be penalized 6% of the excess contribution each and every year that excess remains in the SEP-IRA.

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