First, I entered the full amount of Traditional IRA contributions, and after I entered the amount to maximize SEP contributions. I had revisited the Traditional IRA deduction before I was ready to finish the tax return.
Contributions to the SEP-IRA exceeded the maximum limits and we wanted to distribute the excess amount.
So, If she is self-employed, and does her SEP IRA deduction is 25% of net self-employment income deduct her traditional IRA contributions? Will we have to withdraw the excess contributions of the traditional IRA?
