I will try to take a nap this afternoon, so I can stop asking questions with my research right in front of me, but not sinking into my foggy brain.
Client with Schedule C $0 profit made a $7,000 SEP contribution that he does not qualify for on his 2020 return. He asked if he can recharacterize (convert?) it to a 2020 Traditional IRA.
As I searched, I was seeing NO due to the TIRA deadline at 17 May (or 15 April?). But if he recharacterizes from a SEP to a TIRA, does it count as his original contribution date back in the spring?
These are two SE people, and hubby pushes for every deduction known to man or woman. He's had $0 profit for years, with lots of suspended deductions. So the last couple years with tentative profit are taken down to $0 by using up some suspended OIH deductions.
And, they're complaining about no retirement contributions and higher taxable income -- however, they're trying to get a mortgage!! Yes, they rushed me to prepare their returns and then spent the last 10 days arguing about every number. I'd fire them, but their grown daughter is so nice, and I prepare her returns, also. We'll see how this year finally ends with them, because I might fire them anyway. Unfortunately, my invoice is in their review copy, or I'd be increasing their price today.
Client with Schedule C $0 profit made a $7,000 SEP contribution that he does not qualify for on his 2020 return. He asked if he can recharacterize (convert?) it to a 2020 Traditional IRA.
As I searched, I was seeing NO due to the TIRA deadline at 17 May (or 15 April?). But if he recharacterizes from a SEP to a TIRA, does it count as his original contribution date back in the spring?
These are two SE people, and hubby pushes for every deduction known to man or woman. He's had $0 profit for years, with lots of suspended deductions. So the last couple years with tentative profit are taken down to $0 by using up some suspended OIH deductions.
And, they're complaining about no retirement contributions and higher taxable income -- however, they're trying to get a mortgage!! Yes, they rushed me to prepare their returns and then spent the last 10 days arguing about every number. I'd fire them, but their grown daughter is so nice, and I prepare her returns, also. We'll see how this year finally ends with them, because I might fire them anyway. Unfortunately, my invoice is in their review copy, or I'd be increasing their price today.
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