for this but still need some help. A 1099 Code P. The excess for a SEP was withdrawn by the due date for the year. Put a zero in taxable and call it good? End of story? Or do I need to do a 5329 or something to show that the excess contributions were taken out?
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JG -
1099R Form?
JG
are you asking about form 1099R and code P in box #7 ?
Sandy -
Code P - excess contributions plus earnings, taxable in 2005; so if it was included in 2005 income, you are good. Zero taxable on this for 2006.Comment
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Thanks
I needed that - getting a little shaky as I realize how many returns are between the file cabinet and the file cabinet. (Floating in mid air somewhere around the office.)JGComment
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big "IF"
>>if it was included in 2005 income<<
That's a mighty big "IF." Typically Code P means you have to amend the prior year return, unless the repayment had been made early enough for the taxpayer to adjust the deduction. Often there is no way to know the amount of the excess contribution until after the company's year-end books are finalized, which could be March or later. Even if they know about the repayment ahead of time, taxpayers usually don't understand what the tax implications are.Comment
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It was included. The books were done and the mistake fixed before the taxes were finanized.JGComment
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