Lynn Campbell Posted December 10, 1999 Posted December 10, 1999 In a takeover situation, how would you "withdraw" a contribution that should have been made to the qualified PS Plan and was by error deposited in an inactive SEP? This was an accounting error, essentially, due to confusion on accounts. Deposit was made in 1997 for a 7/31/97 Plan Year. Thanks for all input...
Dave Baker Posted December 10, 1999 Posted December 10, 1999 The SEP money has been in the employees' IRAs since then?
Lynn Campbell Posted December 10, 1999 Author Posted December 10, 1999 To clarify - all the $$ went to just 1 SEP - which was set up years ago for one of the HCEs.
Gary Lesser Posted January 13, 2000 Posted January 13, 2000 If the error was the depositing institutions they may (or may not)coreect it and all of the paperwork. Assuming SEP contributions are not being made for other eligible employess, then the excess should be included o the W-2 form (or treated as EI is self-employed) and remnoved as an excess contribution under the IRA rules. The amount cannot be transferred from the SEP to the QP (it must be contributed by E/er to be deductible).
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