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Federal Tax Amended Return

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Federal Tax Amended Return

Federal tax amended return Part One -   Fuel Taxes and Fuel Tax Credits and Refunds Chapter 1 defines the types of fuel, taxable events, and exemptions or exceptions to the fuel taxes. Federal tax amended return Chapter 2 provides information on, and definitions of, the nontaxable uses and explains how to make a claim. Federal tax amended return Table of Contents 1. Federal tax amended return   Fuel TaxesDefinitions Information Returns Registration RequirementsAdditional information. Federal tax amended return Gasoline and Aviation GasolineTaxable Events Gasoline Blendstocks Diesel Fuel and KeroseneTaxable Events Dyed Diesel Fuel and Dyed Kerosene Alaska and Feedstocks Back-up Tax Diesel-Water Fuel Emulsion Kerosene for Use in AviationTaxable Events Liability For Tax Surtax on any liquid used in a fractional ownership program aircraft as fuel Certificate for Commercial Aviation and Exempt UsesExempt use. Federal tax amended return Reseller statement. Federal tax amended return Other Fuels (Including Alternative Fuels)Taxable Events Compressed Natural Gas (CNG)Taxable Events Fuels Used on Inland WaterwaysFishing vessels. Federal tax amended return Deep-draft ocean-going vessels. Federal tax amended return Passenger vessels. Federal tax amended return Ocean-going barges. Federal tax amended return State or local governments. Federal tax amended return Cellulosic or Second Generation Biofuel Not Used as Fuel Biodiesel Sold as But Not Used as Fuel 2. Federal tax amended return   Fuel Tax Credits and RefundsGasoline and Aviation Gasoline Undyed Diesel Fuel and Undyed Kerosene (Other Than Kerosene Used in Aviation)Sales by Registered Ultimate Vendors Diesel-Water Fuel Emulsion Kerosene for Use in AviationSales by Registered Ultimate Vendors Other Fuels (Including Alternative Fuels) Refunds of Second TaxOptional reporting. Federal tax amended return Providing information. Federal tax amended return Definitions of Nontaxable UsesCustom application of fertilizer and pesticide. Federal tax amended return Fuel used between airfield and farm. Federal tax amended return Fuel not used for farming. Federal tax amended return Vehicles not considered highway vehicles. Federal tax amended return Biodiesel or Renewable Diesel Mixture Credit, Alternative Fuel Credit, and Alternative Fuel Mixture CreditHow to Claim the Credit Filing Claims Claiming A Refund Claiming a Credit on Form 4136 Including the Credit or Refund in Income Prev  Up  Next   Home   More Online Publications
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SOI Tax Stats - Individual Tax Statistics

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Here you will find links to various studies relating to the individual taxpayer.

 

Individual Income Tax Numerous studies which provide statistics on income, deductions, tax, and credits reported on individual Form 1040 income tax returns and associated schedules are available in this area. Find statistics on high income tax returns, income tax rates, nonfarm sole proprietorships, data by geographic areas, and more...

Estate Tax

Estate Tax Statistics OneSheet

This annual study includes information on gross estate and its composition, deductions, and tax; and information on the age, sex, and marital status of decedents. Basic estate tax return data by year in which returns are filed are produced each year. Also included are data on nonresident aliens who had more than $60,000 of assets in the United States. These data come from taxpayers filing Form 706.
International Numerous studies which provide statistics on the individual taxpayer in the international context. Find statistics on foreign recipients of U.S. income, foreign trusts, individual foreign earned income and the foreign tax credit, international boycotts and nonresident alien estate tax returns. These data come from taxpayers filing Forms 706-NA, 1042-S, 1116, 2555, 3520, 5713 and more.
Personal Wealth This periodic study provides estimates of personal wealth of top wealth holders that are generated from estate tax return data using the "estate multiplier" technique, in conjunction with both filing-year and year-of-death estate databases.

Income from Trusts and Estates

Snapshot of Estate and Trust Income Tax Statistics

The U.S. Income Tax Return for Estates and Trusts (Form 1041) is used to report the income, deductions, gains, and losses of estates and trusts, as well as distributions to beneficiaries and income tax liability. Entities are classified into types based on their purpose.  

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Page Last Reviewed or Updated: 24-Mar-2014

The Federal Tax Amended Return

Federal tax amended return 2. Federal tax amended return   Simplified Employee Pensions (SEPs) Table of Contents Topics - This chapter discusses: Useful Items - You may want to see: Setting Up a SEPWhen not to use Form 5305-SEP. Federal tax amended return How Much Can I Contribute?Contribution Limits Deducting ContributionsDeduction Limit for Contributions for Participants Deduction Limit for Self-Employed Individuals Carryover of Excess SEP Contributions When To Deduct Contributions Where To Deduct Contributions Salary Reduction Simplified Employee Pensions (SARSEPs)SARSEP ADP test. Federal tax amended return Deferral percentage. Federal tax amended return Employee compensation. Federal tax amended return Compensation of self-employed individuals. Federal tax amended return Choice not to treat deferrals as compensation. Federal tax amended return Limit on Elective Deferrals Tax Treatment of Deferrals Distributions (Withdrawals) Additional TaxesEffects on employee. Federal tax amended return Reporting and Disclosure Requirements Topics - This chapter discusses: Setting up a SEP How much can I contribute Deducting contributions Salary reduction simplified employee pensions (SARSEPs) Distributions (withdrawals) Additional taxes Reporting and disclosure requirements Useful Items - You may want to see: Publication 590 Individual Retirement Arrangements (IRAs) 3998 Choosing A Retirement Solution for Your Small Business 4285 SEP Checklist 4286 SARSEP Checklist 4333 SEP Retirement Plans for Small Businesses 4336 SARSEP for Small Businesses 4407 SARSEP—Key Issues and Assistance Forms (and Instructions) W-2 Wage and Tax Statement 1040 U. Federal tax amended return S. Federal tax amended return Individual Income Tax Return 5305-SEP Simplified Employee Pension—Individual Retirement Accounts Contribution Agreement 5305A-SEP Salary Reduction Simplified Employee Pension—Individual Retirement Accounts Contribution Agreement 8880 Credit for Qualified Retirement Savings Contributions 8881 Credit for Small Employer Pension Plan Startup Costs A SEP is a written plan that allows you to make contributions toward your own retirement and your employees' retirement without getting involved in a more complex qualified plan. Federal tax amended return Under a SEP, you make contributions to a traditional individual retirement arrangement (called a SEP-IRA) set up by or for each eligible employee. Federal tax amended return A SEP-IRA is owned and controlled by the employee, and you make contributions to the financial institution where the SEP-IRA is maintained. Federal tax amended return SEP-IRAs are set up for, at a minimum, each eligible employee (defined below). Federal tax amended return A SEP-IRA may have to be set up for a leased employee (defined in chapter 1), but does not need to be set up for excludable employees (defined later). Federal tax amended return Eligible employee. Federal tax amended return   An eligible employee is an individual who meets all the following requirements. Federal tax amended return Has reached age 21. Federal tax amended return Has worked for you in at least 3 of the last 5 years. Federal tax amended return Has received at least $550 in compensation from you in 2013. Federal tax amended return This amount remains the same in 2014. Federal tax amended return    You can use less restrictive participation requirements than those listed, but not more restrictive ones. Federal tax amended return Excludable employees. Federal tax amended return   The following employees can be excluded from coverage under a SEP. Federal tax amended return Employees covered by a union agreement and whose retirement benefits were bargained for in good faith by the employees' union and you. Federal tax amended return Nonresident alien employees who have received no U. Federal tax amended return S. Federal tax amended return source wages, salaries, or other personal services compensation from you. Federal tax amended return For more information about nonresident aliens, see Publication 519, U. Federal tax amended return S. Federal tax amended return Tax Guide for Aliens. Federal tax amended return Setting Up a SEP There are three basic steps in setting up a SEP. Federal tax amended return You must execute a formal written agreement to provide benefits to all eligible employees. Federal tax amended return You must give each eligible employee certain information about the SEP. Federal tax amended return A SEP-IRA must be set up by or for each eligible employee. Federal tax amended return Many financial institutions will help you set up a SEP. Federal tax amended return Formal written agreement. Federal tax amended return   You must execute a formal written agreement to provide benefits to all eligible employees under a SEP. Federal tax amended return You can satisfy the written agreement requirement by adopting an IRS model SEP using Form 5305-SEP. Federal tax amended return However, see When not to use Form 5305-SEP, below. Federal tax amended return   If you adopt an IRS model SEP using Form 5305-SEP, no prior IRS approval or determination letter is required. Federal tax amended return Keep the original form. Federal tax amended return Do not file it with the IRS. Federal tax amended return Also, using Form 5305-SEP will usually relieve you from filing annual retirement plan information returns with the IRS and the Department of Labor. Federal tax amended return See the Form 5305-SEP instructions for details. Federal tax amended return If you choose not to use Form 5305-SEP, you should seek professional advice in adopting a SEP. Federal tax amended return When not to use Form 5305-SEP. Federal tax amended return   You cannot use Form 5305-SEP if any of the following apply. Federal tax amended return You currently maintain any other qualified retirement plan other than another SEP. Federal tax amended return You have any eligible employees for whom IRAs have not been set up. Federal tax amended return You use the services of leased employees, who are not your common-law employees (as described in chapter 1). Federal tax amended return You are a member of any of the following unless all eligible employees of all the members of these groups, trades, or businesses participate under the SEP. Federal tax amended return An affiliated service group described in section 414(m). Federal tax amended return A controlled group of corporations described in section 414(b). Federal tax amended return Trades or businesses under common control described in section 414(c). Federal tax amended return You do not pay the cost of the SEP contributions. Federal tax amended return Information you must give to employees. Federal tax amended return   You must give each eligible employee a copy of Form 5305-SEP, its instructions, and the other information listed in the Form 5305-SEP instructions. Federal tax amended return An IRS model SEP is not considered adopted until you give each employee this information. Federal tax amended return Setting up the employee's SEP-IRA. Federal tax amended return   A SEP-IRA must be set up by or for each eligible employee. Federal tax amended return SEP-IRAs can be set up with banks, insurance companies, or other qualified financial institutions. Federal tax amended return You send SEP contributions to the financial institution where the SEP-IRA is maintained. Federal tax amended return Deadline for setting up a SEP. Federal tax amended return   You can set up a SEP for any year as late as the due date (including extensions) of your income tax return for that year. Federal tax amended return Credit for startup costs. Federal tax amended return   You may be able to claim a tax credit for part of the ordinary and necessary costs of starting a SEP that first became effective in 2013. Federal tax amended return For more information, see Credit for startup costs under Reminders, earlier. Federal tax amended return How Much Can I Contribute? The SEP rules permit you to contribute a limited amount of money each year to each employee's SEP-IRA. Federal tax amended return If you are self-employed, you can contribute to your own SEP-IRA. Federal tax amended return Contributions must be in the form of money (cash, check, or money order). Federal tax amended return You cannot contribute property. Federal tax amended return However, participants may be able to transfer or roll over certain property from one retirement plan to another. Federal tax amended return See Publication 590 for more information about rollovers. Federal tax amended return You do not have to make contributions every year. Federal tax amended return But if you make contributions, they must be based on a written allocation formula and must not discriminate in favor of highly compensated employees (defined in chapter 1). Federal tax amended return When you contribute, you must contribute to the SEP-IRAs of all participants who actually performed personal services during the year for which the contributions are made, including employees who die or terminate employment before the contributions are made. Federal tax amended return Contributions are deductible within limits, as discussed later, and generally are not taxable to the plan participants. Federal tax amended return A SEP-IRA cannot be a Roth IRA. Federal tax amended return Employer contributions to a SEP-IRA will not affect the amount an individual can contribute to a Roth or traditional IRA. Federal tax amended return Unlike regular contributions to a traditional IRA, contributions under a SEP can be made to participants over age 70½. Federal tax amended return If you are self-employed, you can also make contributions under the SEP for yourself even if you are over 70½. Federal tax amended return Participants age 70½ or over must take required minimum distributions. Federal tax amended return Time limit for making contributions. Federal tax amended return   To deduct contributions for a year, you must make the contributions by the due date (including extensions) of your tax return for the year. Federal tax amended return Contribution Limits Contributions you make for 2013 to a common-law employee's SEP-IRA cannot exceed the lesser of 25% of the employee's compensation or $51,000. Federal tax amended return Compensation generally does not include your contributions to the SEP. Federal tax amended return The SEP plan document will specify how the employer contribution is determined and how it will be allocated to participants. Federal tax amended return Example. Federal tax amended return Your employee, Mary Plant, earned $21,000 for 2013. Federal tax amended return The maximum contribution you can make to her SEP-IRA is $5,250 (25% x $21,000). Federal tax amended return Contributions for yourself. Federal tax amended return   The annual limits on your contributions to a common-law employee's SEP-IRA also apply to contributions you make to your own SEP-IRA. Federal tax amended return However, special rules apply when figuring your maximum deductible contribution. Federal tax amended return See Deduction Limit for Self-Employed Individuals , later. Federal tax amended return Annual compensation limit. Federal tax amended return   You cannot consider the part of an employee's compensation over $255,000 when figuring your contribution limit for that employee. Federal tax amended return However, $51,000 is the maximum contribution for an eligible employee. Federal tax amended return These limits are $260,000 and $52,000, respectively, in 2014. Federal tax amended return Example. Federal tax amended return Your employee, Susan Green, earned $210,000 for 2013. Federal tax amended return Because of the maximum contribution limit for 2013, you can only contribute $51,000 to her SEP-IRA. Federal tax amended return More than one plan. Federal tax amended return   If you contribute to a defined contribution plan (defined in chapter 4), annual additions to an account are limited to the lesser of $51,000 or 100% of the participant's compensation. Federal tax amended return When you figure this limit, you must add your contributions to all defined contribution plans maintained by you. Federal tax amended return Because a SEP is considered a defined contribution plan for this limit, your contributions to a SEP must be added to your contributions to other defined contribution plans you maintain. Federal tax amended return Tax treatment of excess contributions. Federal tax amended return   Excess contributions are your contributions to an employee's SEP-IRA (or to your own SEP-IRA) for 2013 that exceed the lesser of the following amounts. Federal tax amended return 25% of the employee's compensation (or, for you, 20% of your net earnings from self-employment). Federal tax amended return $51,000. Federal tax amended return Excess contributions are included in the employee's income for the year and are treated as contributions by the employee to his or her SEP-IRA. Federal tax amended return For more information on employee tax treatment of excess contributions, see chapter 1 in Publication 590. Federal tax amended return Reporting on Form W-2. Federal tax amended return   Do not include SEP contributions on your employee's Form W-2 unless contributions were made under a salary reduction arrangement (discussed later). Federal tax amended return Deducting Contributions Generally, you can deduct the contributions you make each year to each employee's SEP-IRA. Federal tax amended return If you are self-employed, you can deduct the contributions you make each year to your own SEP-IRA. Federal tax amended return Deduction Limit for Contributions for Participants The most you can deduct for your contributions to you or your employee's SEP-IRA is the lesser of the following amounts. Federal tax amended return Your contributions (including any excess contributions carryover). Federal tax amended return 25% of the compensation (limited to $255,000 per participant) paid to the participants during 2013 from the business that has the plan, not to exceed $51,000 per participant. Federal tax amended return In 2014, the amounts in (2) above are $260,000 and $52,000, respectively. Federal tax amended return Deduction Limit for Self-Employed Individuals If you contribute to your own SEP-IRA, you must make a special computation to figure your maximum deduction for these contributions. Federal tax amended return When figuring the deduction for contributions made to your own SEP-IRA, compensation is your net earnings from self-employment (defined in chapter 1), which takes into account both the following deductions. Federal tax amended return The deduction for the deductible part of your self-employment tax. Federal tax amended return The deduction for contributions to your own SEP-IRA. Federal tax amended return The deduction for contributions to your own SEP-IRA and your net earnings depend on each other. Federal tax amended return For this reason, you determine the deduction for contributions to your own SEP-IRA indirectly by reducing the contribution rate called for in your plan. Federal tax amended return To do this, use the Rate Table for Self-Employed or the Rate Worksheet for Self-Employed, whichever is appropriate for your plan's contribution rate, in chapter 5. Federal tax amended return Then figure your maximum deduction by using the Deduction Worksheet for Self-Employed in chapter 5. Federal tax amended return Carryover of Excess SEP Contributions If you made SEP contributions that are more than the deduction limit (nondeductible contributions), you can carry over and deduct the difference in later years. Federal tax amended return However, the carryover, when combined with the contribution for the later year, is subject to the deduction limit for that year. Federal tax amended return If you also contributed to a defined benefit plan or defined contribution plan, see Carryover of Excess Contributions under Employer Deduction in chapter 4 for the carryover limit. Federal tax amended return Excise tax. Federal tax amended return   If you made nondeductible (excess) contributions to a SEP, you may be subject to a 10% excise tax. Federal tax amended return For information about the excise tax, see Excise Tax for Nondeductible (Excess) Contributions under Employer Deduction in chapter 4. Federal tax amended return When To Deduct Contributions When you can deduct contributions made for a year depends on the tax year on which the SEP is maintained. Federal tax amended return If the SEP is maintained on a calendar year basis, you deduct the yearly contributions on your tax return for the year within which the calendar year ends. Federal tax amended return If you file your tax return and maintain the SEP using a fiscal year or short tax year, you deduct contributions made for a year on your tax return for that year. Federal tax amended return Example. Federal tax amended return You are a fiscal year taxpayer whose tax year ends June 30. Federal tax amended return You maintain a SEP on a calendar year basis. Federal tax amended return You deduct SEP contributions made for calendar year 2013 on your tax return for your tax year ending June 30, 2014. Federal tax amended return Where To Deduct Contributions Deduct the contributions you make for your common-law employees on your tax return. Federal tax amended return For example, sole proprietors deduct them on Schedule C (Form 1040) or Schedule F (Form 1040), Profit or Loss From Farming; partnerships deduct them on Form 1065, U. Federal tax amended return S. Federal tax amended return Return of Partnership Income; and corporations deduct them on Form 1120, U. Federal tax amended return S. Federal tax amended return Corporation Income Tax Return, or Form 1120S, U. Federal tax amended return S. Federal tax amended return Income Tax Return for an S Corporation. Federal tax amended return Sole proprietors and partners deduct contributions for themselves on line 28 of Form 1040. Federal tax amended return (If you are a partner, contributions for yourself are shown on the Schedule K-1 (Form 1065), Partner's Share of Income, Deductions, Credits, etc. Federal tax amended return , you receive from the partnership. Federal tax amended return ) Remember that sole proprietors and partners can't deduct as a business expense contributions made to a SEP for themselves, only those made for their common-law employees. Federal tax amended return Salary Reduction Simplified Employee Pensions (SARSEPs) A SARSEP is a SEP set up before 1997 that includes a salary reduction arrangement. Federal tax amended return (See the Caution, next. Federal tax amended return ) Under a SARSEP, your employees can choose to have you contribute part of their pay to their SEP-IRAs rather than receive it in cash. Federal tax amended return This contribution is called an “elective deferral” because employees choose (elect) to set aside the money, and they defer the tax on the money until it is distributed to them. Federal tax amended return You are not allowed to set up a SARSEP after 1996. Federal tax amended return However, participants (including employees hired after 1996) in a SARSEP set up before 1997 can continue to have you contribute part of their pay to the plan. Federal tax amended return If you are interested in setting up a retirement plan that includes a salary reduction arrangement, see chapter 3. Federal tax amended return Who can have a SARSEP?   A SARSEP set up before 1997 is available to you and your eligible employees only if all the following requirements are met. Federal tax amended return At least 50% of your employees eligible to participate choose to make elective deferrals. Federal tax amended return You have 25 or fewer employees who were eligible to participate in the SEP at any time during the preceding year. Federal tax amended return The elective deferrals of your highly compensated employees meet the SARSEP ADP test. Federal tax amended return SARSEP ADP test. Federal tax amended return   Under the SARSEP ADP test, the amount deferred each year by each eligible highly compensated employee as a percentage of pay (the deferral percentage) cannot be more than 125% of the average deferral percentage (ADP) of all non-highly compensated employees eligible to participate. Federal tax amended return A highly compensated employee is defined in chapter 1. Federal tax amended return Deferral percentage. Federal tax amended return   The deferral percentage for an employee for a year is figured as follows. Federal tax amended return   The elective employer contributions (excluding certain catch-up contributions)  paid to the SEP for the employee for the year     The employee's compensation (limited to $255,000 in 2013)   The instructions for Form 5305A-SEP have a worksheet you can use to determine whether the elective deferrals of your highly compensated employees meet the SARSEP ADP test. Federal tax amended return Employee compensation. Federal tax amended return   For figuring the deferral percentage, compensation is generally the amount you pay to the employee for the year. Federal tax amended return Compensation includes the elective deferral and other amounts deferred in certain employee benefit plans. Federal tax amended return See Compensation in chapter 1. Federal tax amended return Elective deferrals under the SARSEP are included in figuring your employees' deferral percentage even though they are not included in the income of your employees for income tax purposes. Federal tax amended return Compensation of self-employed individuals. Federal tax amended return   If you are self-employed, compensation is your net earnings from self-employment as defined in chapter 1. Federal tax amended return   Compensation does not include tax-free items (or deductions related to them) other than foreign earned income and housing cost amounts. Federal tax amended return Choice not to treat deferrals as compensation. Federal tax amended return   You can choose not to treat elective deferrals (and other amounts deferred in certain employee benefit plans) for a year as compensation under your SARSEP. Federal tax amended return Limit on Elective Deferrals The most a participant can choose to defer for calendar year 2013 is the lesser of the following amounts. Federal tax amended return 25% of the participant's compensation (limited to $255,000 of the participant's compensation). Federal tax amended return $17,500. Federal tax amended return The $17,500 limit applies to the total elective deferrals the employee makes for the year to a SEP and any of the following. Federal tax amended return Cash or deferred arrangement (section 401(k) plan). Federal tax amended return Salary reduction arrangement under a tax-sheltered annuity plan (section 403(b) plan). Federal tax amended return SIMPLE IRA plan. Federal tax amended return In 2014, the $255,000 limit increases to $260,000 and the $17,500 limit remains at $17,500. Federal tax amended return Catch-up contributions. Federal tax amended return   A SARSEP can permit participants who are age 50 or over at the end of the calendar year to also make catch-up contributions. Federal tax amended return The catch-up contribution limit for 2013 is $5,500 and remains at $5,500 for 2014. Federal tax amended return Elective deferrals are not treated as catch-up contributions for 2013 until they exceed the elective deferral limit (the lesser of 25% of compensation or $17,500), the SARSEP ADP test limit discussed earlier, or the plan limit (if any). Federal tax amended return However, the catch-up contribution a participant can make for a year cannot exceed the lesser of the following amounts. Federal tax amended return The catch-up contribution limit. Federal tax amended return The excess of the participant's compensation over the elective deferrals that are not catch-up contributions. Federal tax amended return   Catch-up contributions are not subject to the elective deferral limit (the lesser of 25% of compensation or $17,500 in 2013 and in 2014). Federal tax amended return Overall limit on SEP contributions. Federal tax amended return   If you also make nonelective contributions to a SEP-IRA, the total of the nonelective and elective contributions to that SEP-IRA cannot exceed the lesser of 25% of the employee's compensation or $51,000 for 2013 ($52,000 for 2014). Federal tax amended return The same rule applies to contributions you make to your own SEP-IRA. Federal tax amended return See Contribution Limits , earlier. Federal tax amended return Figuring the elective deferral. Federal tax amended return   For figuring the 25% limit on elective deferrals, compensation does not include SEP contributions, including elective deferrals or other amounts deferred in certain employee benefit plans. Federal tax amended return Tax Treatment of Deferrals Elective deferrals that are not more than the limits discussed earlier under Limit on Elective Deferrals are excluded from your employees' wages subject to federal income tax in the year of deferral. Federal tax amended return However, these deferrals are included in wages for social security, Medicare, and federal unemployment (FUTA) tax. Federal tax amended return Excess deferrals. Federal tax amended return   For 2013, excess deferrals are the elective deferrals for the year that are more than the $17,500 limit discussed earlier. Federal tax amended return For a participant who is eligible to make catch-up contributions, excess deferrals are the elective deferrals that are more than $23,000. Federal tax amended return The treatment of excess deferrals made under a SARSEP is similar to the treatment of excess deferrals made under a qualified plan. Federal tax amended return See Treatment of Excess Deferrals under Elective Deferrals (401(k) Plans) in chapter 4. Federal tax amended return Excess SEP contributions. Federal tax amended return   Excess SEP contributions are elective deferrals of highly compensated employees that are more than the amount permitted under the SARSEP ADP test. Federal tax amended return You must notify your highly compensated employees within 2½ months after the end of the plan year of their excess SEP contributions. Federal tax amended return If you do not notify them within this time period, you must pay a 10% tax on the excess. Federal tax amended return For an explanation of the notification requirements, see Rev. Federal tax amended return Proc. Federal tax amended return 91-44, 1991-2 C. Federal tax amended return B. Federal tax amended return 733. Federal tax amended return If you adopted a SARSEP using Form 5305A-SEP, the notification requirements are explained in the instructions for that form. Federal tax amended return Reporting on Form W-2. Federal tax amended return   Do not include elective deferrals in the “Wages, tips, other compensation” box of Form W-2. Federal tax amended return You must, however, include them in the “Social security wages” and “Medicare wages and tips” boxes. Federal tax amended return You must also include them in box 12. Federal tax amended return Mark the “Retirement plan” checkbox in box 13. Federal tax amended return For more information, see the Form W-2 instructions. Federal tax amended return Distributions (Withdrawals) As an employer, you cannot prohibit distributions from a SEP-IRA. Federal tax amended return Also, you cannot make your contributions on the condition that any part of them must be kept in the account after you have made your contributions to the employee's accounts. Federal tax amended return Distributions are subject to IRA rules. Federal tax amended return Generally, you or your employee must begin to receive distributions from a SEP-IRA by April 1 of the first year after the calendar year in which you or your employee reaches age 70½. Federal tax amended return For more information about IRA rules, including the tax treatment of distributions, rollovers, required distributions, and income tax withholding, see Publication 590. Federal tax amended return Additional Taxes The tax advantages of using SEP-IRAs for retirement savings can be offset by additional taxes that may be imposed for all the following actions. Federal tax amended return Making excess contributions. Federal tax amended return Making early withdrawals. Federal tax amended return Not making required withdrawals. Federal tax amended return For information about these taxes, see chapter 1 in Publication 590. Federal tax amended return Also, a SEP-IRA may be disqualified, or an excise tax may apply, if the account is involved in a prohibited transaction, discussed next. Federal tax amended return Prohibited transaction. Federal tax amended return   If an employee improperly uses his or her SEP-IRA, such as by borrowing money from it, the employee has engaged in a prohibited transaction. Federal tax amended return In that case, the SEP-IRA will no longer qualify as an IRA. Federal tax amended return For a list of prohibited transactions, see Prohibited Transactions in chapter 4. Federal tax amended return Effects on employee. Federal tax amended return   If a SEP-IRA is disqualified because of a prohibited transaction, the assets in the account will be treated as having been distributed to the employee on the first day of the year in which the transaction occurred. Federal tax amended return The employee must include in income the fair market value of the assets (on the first day of the year) that is more than any cost basis in the account. Federal tax amended return Also, the employee may have to pay the additional tax for making early withdrawals. Federal tax amended return Reporting and Disclosure Requirements If you set up a SEP using Form 5305-SEP, you must give your eligible employees certain information about the SEP when you set it up. Federal tax amended return See Setting Up a SEP , earlier. Federal tax amended return Also, you must give your eligible employees a statement each year showing any contributions to their SEP-IRAs. Federal tax amended return You must also give them notice of any excess contributions. Federal tax amended return For details about other information you must give them, see the instructions for Form 5305-SEP or Form 5305A-SEP (for a salary reduction SEP). Federal tax amended return Even if you did not use Form 5305-SEP or Form 5305A-SEP to set up your SEP, you must give your employees information similar to that described above. Federal tax amended return For more information, see the instructions for either Form 5305-SEP or Form 5305A-SEP. Federal tax amended return Prev  Up  Next   Home   More Online Publications