What should we do if we exceeded SEP contribution limit?

[wkeithnix]

We overfunded our SEP by about $5K, what is the best thing to do to correct?

[fanfare]

the best thing is to wait until January when TurboTax can compute your exact allowed SEP contribution, not an estimate.

you ask for the calculation when your tax return is complete in all other respects.

then ask custodian to return the excess to you.

@wkeithnix 

[fanfare]

If excess contribution plus earnings shows a loss and the loss is more than $300, ( 6% )

your other option is to leave the money in the SEP pay the penalty and reduce your 2023 contribution by about $5,000.

Custodian should be able to tell you the numbers without actually doing the operation.

@wkeithnix