Sep ira

[peggysioux]

Along with 2016 tax info, taxpayer brings in 2015 info showing contributions to a 2015 SEP IRA. However, taxpayer had no net profit for his business in 2015. What is next step - does he need to transfer funds from a SEP IRA to a Spousal traditional IRA? The amount contributed is less than the maximum contribution limit and taxpayer has no other retirement plan.

Peggy Sioux

[Roland Slugg]

What is next step - does he need to transfer funds from a SEP IRA to a [ ] traditional IRA?

Yes, I think that is what I would advise. I would also suggest that he consider filing an amended 2015 return, showing the contribution as a traditional instead of a SEP IRA.