@dmertz: Unfortunately I made the excess contribution IN 2024, and moreover I have already made nearly the maximum contribution IN 2025 FOR 2025. The custodian of my SEP IRA has told me that I cannot just withdraw the excess (plus applicable earnings) from my SEP but rather that I must file a Form 5330 and utilize the EPCRS. They do have an online way to take a distribution from the SEP, but presumably taking the distribution in this generic way would make me liable for tax on the distribution (as ordinary income on a 2025 1099R) PLUS 10% penalty since I am not 59 1/2. If I do not take the distribution, does filing form 5330 now and paying the IRS 10% of the excess immediately somehow get me out of dealing with. the IRA custodian and allow me to leave the excess in the IRA? Thanks for any help you are able to provide.
