Excess SEP contribution

[pziggy]

I have an excess SEP contribution in 2020, but do not wish to withdraw the excess.  I will only deduct the maximum allowed on my taxes, which is less than the excess.

I have read in other forums that if I leave the excess in, I will be subject to a penalty and must reduce the maximum contribution for 2021 by the 2020 excess amount.

Is this correct?  If so, what would be the penalty?

[Mike9241]

6% of the excess. 

[pziggy]

Thank you.

IRS confirmed that is the correct penalty.  They also advised I fill out form 5329 to account for the overcontribution and penalty.

However, Turbo Tax does not automatically introduce this form and when I introduce the form manually it is very cumbersome to input information.  It does not allow me to input the required information.

Any advise?