1099-R code P1

[bekzm]

Client has a 2015 1099-R code P1 which client in 2014 put into a SEP IRA $6000 too much into the account. Tried to get it reclassed to 2015 but New your Life would not even before April 15th so issued a check to him to client for the $6000 excess but also the interest taxing $410.75. The way I'm understanding it have to go back to 2014 and amend it for the $410.75. Correct way is amending or put on 2014 and tax it.

thanks

[Burke]

Custodians do not assign tax years to SEP contributions when reporting to IRS so it didn't have to be "reclassified" on their records if it was made in 2015. If TP actually made it in 2014, it could not be for 2015 tax year. If he made it in 2015 before 4/15/15 - or extended due date for tax year 2014, he did not have to do anything. Just use the excess amount on the 2015 return. Since it has been withdrawn and now reported to the IRS as a P1 code, it has to be dealt with. What date did he make the actual contribution? And what amount was reported on 2014 return?

[Rapid Robert]

Custodians do not assign tax years to SEP contributions when reporting to IRS

Really? Don't all IRAs get Form 5498 annual reporting showing contributions made and year end FMV?

[Burke]

Yes, IRA's and SEP's both get that form issued. The difference is, only the IRA shows the tax year of attribution. SEP's don't. Probably because IRA's have a deadline of 4/15 each year. SEP's can delay contributions until extended due date of 10/15.