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posted Jun 6, 2019 12:43:59 PM

How late can I withdraw SEP overpayment for this year?

I did not make enough business income to contribute the maximum of $54,000. Can I withdraw the excess before taxes are due 4/17/18?

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1 Replies
Level 6
Jun 6, 2019 12:44:01 PM

Yes, you can withdraw the excess before taxes are due.  "Employees who withdraw the excess contribution (plus earnings) before the due date for their federal return, including extensions, will avoid the 6% excise tax imposed on excess SEP contributions in an IRA."

Click the IRS link below for more information.

https://www.irs.gov/retirement-plans/retirement-plans-faqs-regarding-seps-contributions