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Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 29558
Experience:  Taxes, Immigration, Labor Relations
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I opened a SEP IRA in November 2015 with Betterment with

Customer Question

I opened a SEP IRA in November 2015 with Betterment with $10,000. I changed my mind and closed the account less than 30 days later and the $10,000 was transferred back into my savings account. I will not be claiming the money as going into a tax deferred account on my 2015 taxes. Do I need to report this transaction and will I be taxed as if it were a disbursement?
Submitted: 1 year ago.
Category: Tax
Expert:  Lev replied 1 year ago.

Distribution before the due date of the return is not taxable, however - that distribution will be reported on form 1099R.
You still will report it on your tax return - line 15a - as gross distribution and line 15b would be zero.

Additional form 5329 might be needed depending how distribution is reported on form 1099R (specifically - verify distribution code in box 7)

Customer: replied 1 year ago.
Thank-you
Expert:  Lev replied 1 year ago.

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