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How to correct SEP over contribution after it has closed?


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Wondering how we might address an over contribution to a SEP IRA if it has since closed and the funds transferred into a 401(k).

2016 tax year, looks like about $2K over the limit was added to the SEP, but a withdrawal doesn't seem possible since the account has since transferred into an Individual 401(k)

Any ideas on how to resolve this?

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Why can't the excess be distributed from the 401(k)? It was ineligible to be in the SEP so it was not eligible for rollover. Just like rolling over excess amounts from a plan to an IRA, where you have to withdraw from the IRA to correct, what makes this different?

Kenneth M. Prell, CEBS, ERPA

Vice President, BPAS Actuarial & Pension Services


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