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401k never terminated while funding SEP IRA


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One person sole proprietor adopted Keogh 401k ( profit sharing /money purchase) in 2005 at fidelity then advised by advisor at fidelity to change to SEP IRA for simplicity in 2015.Based on my income I realize now I would have been able to contribute more had I stayed with Keogh.Never filed 5500 although the balance didn't reach 250,000 until 2012 and was not aware I was suppose to terminate Keogh upon opening SEP IRA.Keogh ( profit sharing /money purchase) has not been funded since opening SEP IRA in 2015.Also I mistakenly since did back door Roth for tax year 2015 to 2018 thinking there would be no tax consequence but realize now there is since I have a SEP IRA..

 

My CPA does not want to help with this so looking for guidance on who to call for help with this.I assume I need a TPA but wondering if I will be able to find one to help me if I do not have an ongoing relationship.Can anybody recommend a TPA in 32207 zip code area( jax,fl) or one that would be will be able to help remotely.

 

What are my chances of getting a favorable decision with these issues using the VCP/SCP ? Hopefully I can connect with a TPA to help me soon but if not should I file a 5500 before the 7/31/deadline even if I will be asking for a retroactive termination of Keogh back to 2015 when the VCP is filed.

 

I took an extension and have not funded my SEP IRA for 2020 .Based on my income and age I would be able to contribute about 10k more to a 401k vs. a SEP IRA for 2020 but wondering if it would be a bad idea to adopt a new 401k for 2020 while  still sorting through the mess with my old Keogh?

 

 

 

 

 

 

 

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supernole, you can have a SEP and a Keogh at same time, you just can't use the IRS 5305 SEP form if you have a Keogh, but rather need to use another approved SEP document that would have provisions to coordinate with the Keogh. If using the IRS 5305 SEP form is your ONLY error, probably a pretty easy fix in VCP. But there are a lot more rules you may have violated, e.g. if you had other employees or made contributions to both Keogh and SEP. You need to have someone review all of the facts.

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Thanks for response Luke.No employees and no contributions made to keogh after starting sep ira in 2015.I realize now that  because of my age 59 and my schedule c net profit well over 200k I would have been better off to have never switched from 401k to sep ira back in 2015.My sep ira 5305 is at ameritrade and my 401k is at fidelity.

 

I am having a hard time finding someone locally with TPA skills to help me with this .Any suggestions on how I may find professional help with this  ?

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