ThomasM125
Expert Alumni

Get your taxes done using TurboTax

You need to take the excess contribution out by the due date of the tax return to avoid paying a penalty. Then, change the SEP contribution for the tax year to reflect the corrected contribution.

 

The income you earned should be minimal, but it does need to be reported. You can do that when you report the distribution that will be reported to you on form 1099-R in the year you received the excess contribution back.

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