My employer contributed approximately 8K to a new SEP IRA in my name, in April 2022 as a 2021 contribution. I already filed my 2021 return and received my refund prior to the contribution. Also, in July 2022 I had to liquidate the SEP IRA as I needed the funds. I understand there is a Penalty in addition to the 10% that was mandatory withheld. I then withheld 15% federal and 4.25% for Michigan. My questions are 1. Do I need to Amend my 2021 return? 2. Where can I Amend my 2021 return if needed. 3. What is the penalty? 4. How will I be notified of the penalty. Thank you.
Hi @Jgewertz
1. Do I need to Amend my 2021 return?
Yes! You will want to amend your 2021 return to reflect the contributions your employer made. This could qualify you for addition tax breaks.
2. Where can I Amend my 2021 return if needed.
If you used TurboTax Online you can download your Tax file from your account and then purchase Desktop 2021 in order to make the Amend.
3. What is the penalty?
The penalty is 10% on early withdraws. See this IRS Publication
4. How will I be notified of the penalty.
This penalty is automatically calculated in TurboTax when you input your 1099-R
If you have more questions please reply below.
Thank you for choosing TurboTax!
Hi @Jgewertz
1. Do I need to Amend my 2021 return?
Yes! You will want to amend your 2021 return to reflect the contributions your employer made. This could qualify you for addition tax breaks.
2. Where can I Amend my 2021 return if needed.
If you used TurboTax Online you can download your Tax file from your account and then purchase Desktop 2021 in order to make the Amend.
3. What is the penalty?
The penalty is 10% on early withdraws. See this IRS Publication
4. How will I be notified of the penalty.
This penalty is automatically calculated in TurboTax when you input your 1099-R
If you have more questions please reply below.
Thank you for choosing TurboTax!