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Posted

e have a SARSEP that has always passed the testing in previous years. It did not pass. The 2 HCE's are over 50. Can the excess be re-characterized as catch up contributions as in a 401k plan?

Posted

Excerpt from the SAR-SEP form:

Excess SEP contributions of a highly
compensated employee who is 50 or older before the end of the calendar year do not have to be
removed from the employee’s SEP-IRA to the extent the amount of the excess SEP contributions is
less than the catch-up elective deferral contribution limit (see Section 402(g) Limit above)
reduced by
lective deferral contributions
already made for the year.
 

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