ErnieS0
Expert Alumni

Retirement tax questions

You can fix the mistake by removing the excess amounts @SCRosu

 

See the IRS SEP Plan Fix-It Guide - Contributions to the SEP-IRA exceeded the maximum legal limits

 

A SEP is based on business income so its contribution limits are not related to any Roth IRA contribution limits. Transfers between the those accounts are not contributions. 

 

You can convert SEP money into a Roth but that is a conversion of existing money and not a transferred contribution. You can't recharacterize money from a SEP to an IRA.

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