coleboy Posted August 8, 2018 Posted August 8, 2018 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?
Belgarath Posted August 8, 2018 Posted August 8, 2018 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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