SEP IRA Error

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    Raymond Garnsey
    Participant

    In February of 2019, client was advised to make an IRA contribution for 2018 to eliminate a tax payment on her 2018 tax return.

    She had a SEP IRA when she owned her business which she no longer has. She deposited her money into that account and sent me a copy of the paperwork. Called her and told her she cannot do that because she no longer has the business and only the business can contribute to the SEP IRA.

    She went to the bank and the bank opened a Traditional IRA.

    She received a 1099-R for 2019 and the contribution noted as a taxable distribution and not as a rollover to the Traditional IRA.

    Any advice on how to handle this?

    Thanks

    Ray

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