All,
I have a client that contributed to his SEP (or rather, the business did on his behalf) based on a salary of 45,000. Due to the financial condition of the business, the salary is only going to be 20K. So, the business contributed too much to the account. Does it simply not deduct the excess, or does the excess need to be removed from the account by the return due date, as in a regular IRA? Thoughts?
ATG
I have a client that contributed to his SEP (or rather, the business did on his behalf) based on a salary of 45,000. Due to the financial condition of the business, the salary is only going to be 20K. So, the business contributed too much to the account. Does it simply not deduct the excess, or does the excess need to be removed from the account by the return due date, as in a regular IRA? Thoughts?
ATG