Turbo tax to correct SEP Excess contribution ?

Forum|Forum|1 year ago
January 27, 2025
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I contributed $6,000 in April 2024 and $2,000 in December 2024 to my SEP IRA. $2000 was in excess, per Turbo Tax. Thanks to @dmertz, I understand the custodian will reflect $8,000.00 in the Form 5498 they provide for 2024.

If I change my SEP contribution entry for 2023 to $6,000 will this suffice? Or will it trigger an IRS red flag as my reported sEP contribution is only $6,000 for 2023 while the custodian’s 5498 shows $8,000?

I’m not sure they will recognize that the $2,000 contribution made 12/21/24 was actually for 2024 (now). Thank you in advance for responses and your expertise.

TurboTax Home & Biz Windows

Best answer by MAK70

Yes, you can change your 2023 entry to make the correction. The IRS will not automatically examine because the 5498 shows the $8,000. Since the contributions can be made up to the due date of the tax return, you can designate the April 2024 contributions to tax year 2023- just make sure you were qualified to make them. It is your responsibility to keep track of the annual amounts, which TurboTax helps with by producing the Worksheets which are included with your tax records- so just keep copies of these.