The bank advised us to contribute to an IRA, this was on April 13, 2017, we have had a SEP with them for several years. We wrote a check noting "SEP contribution" and then wrote another check Noting "IRA contribution". Since they did not try to open an IRA they put it in the SEP account, on the IRS form 5498 - 2016, box 1 check "IRA contribution" and the SEP had the amount we had written in April 2016 (the year before) in box 8 "SEP contribution". The April 2017 check was not listed. TurboTax help said no other money can be put in a SEP IRA. We had the IRA amount "backed out, including all gains on April 16, 2018, because we did not have an IRA. I complained about the IRA part and last week I gat a 5498 - 2017 from them with the SEP amount we wrote on April 13, 3017.
Question: since the "back out" was done before the tax due date this year will I have to pay 6% penalty. I tried to talk to the advisor person and was told they could not discuss it with me? What the heck is going on??
I looked back to 2010 and found they had my SEP listed as a traditional IRA and was reported as such on the 5498 until June 2014 when the statement suddenly changed from "Traditional IRA" to SEP, what do I do with that. This incorrect reporting has probably being going on for years. I know nothing about retirement stuff, should not have trusted their advisor. TurboTax caught the error when it sent me to a help file. This is with a major banking and investment place.