How Can We Help?
< Back
You are here:
Print

SEPP Violation Nuances

Posted
Last Updated On
Bydlztaxes

L1: SEPP Violation Nuances1. If a taxpayer violates a SEPP from IRA #1 by inadvertently withdrawing additional funds (rather than from IRA #2), can he repay the funds in the same calendar year as soon as he discovers his error in order to avoid penalty ?
2. Same as #1, except he doesn’t discover it until preparing his tax return next year ?
3. If taxpayer violates a SEPP from IRA #1, can he set up a new SEPP from IRA #2 for the appropriate amount based upon the balance in IRA #2 and in accordance with one of the 3 methods ? Or does the violation on IRA #1 stop him from setting up future SEPP’s from other IRA accounts ?2005-07-07 23:27, By: dlztaxes, IP: [4.175.9.122]

L2: SEPP Violation NuancesHello Diz:
1. No, you only have 60 days to repay the additional funds. After that, you may file for extenunating circumstances using Rev. Proc. 2003-16.
2. Same as #1.
3. Yes. What happens with the two IRAs travels independently of each other.
TheBadger
wjstecker@wispertel.net
2005-07-08 07:06, By: TheBadger, IP: [66.250.23.21]

Table of Contents