Excess SEP Contributions Sample Clauses

Excess SEP Contributions. How To Avoid Adverse Tax Consequences If you are a "highly compensated employee," your employer is responsible for notifying you if you have made any excess SEP contributions for a particular plan year. This notification should tell you the amount of the excess SEP contributions, the calendar year in which you must include these contributions in income, and that the contributions may be subject to penalties if you do not withdraw them from your XXX within the applicable time period. Your employer should notify you of the excess SEP contributions within 2 1/2 months of the end of the plan year. Generally you must include the excess SEP contributions in income for the calendar year in which the original deferrals were made. This may require you to file an amended individual income tax return. However, an excess SEP contribution of less than $100 (not including earnings) is includible in the calendar year of notification. Income on these excess contributions is includible in your gross income when you withdraw it from your XXX. You are responsible for withdrawing these excess SEP contributions (and earnings) from your XXX. You may withdraw these amounts, without penalty, until April 15 following the calendar year in which you were notified by your employer of the excess SEP contributions. If you fail to withdraw the excess SEP contributions by April 15 following the calendar year of notification, the excess SEP contributions will be subject to the XXX contribution limitations of sections 219 and 408 of the Code and thus may be considered an excess contribution to your XXX. Thus, such excess SEP contributions may be subject to a six percent excise tax each year they remain in your XXX. If you do not withdraw the income on these excess SEP contributions by April 15 following the calendar year of notification by your employer, the income may be subject to a ten percent tax on early distributions if you are not 59 1/2 when you withdraw it.
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Excess SEP Contributions. Tax Consequences and Notification of Employees You are responsible for notifying each affected employee, if any, within 2 1/2 months following the end of the plan year, of the amount of excess SEP contributions to that employee's SEP-XXX. Such excess SEP contributions are includible in the employee's gross income in the calendar year as of the earliest date that any elective deferrals by the employee during the plan year would have been received by the employee had he or she originally elected to receive the amounts in cash. However, if the excess SEP contributions (not including allocable income) total less than $100, then the excess contributions are includible in the employee's gross income in the calendar year of notification. Income allocable to the excess SEP contributions is includible in gross income in the year of withdrawal from the XXX.
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Excess SEP Contributions. The employer agrees to notify each employee by March 15 of each year of any excess SEP contributions to the employee’s SEP-IRA for the preceding calendar year.
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Excess SEP Contributions. A. As stated above, a worksheet to calculate excess SEP contributions is provided on page 6 of this booklet. This worksheet should be used to determine the amount of excess SEP contributions to be reported to employees with respect to a calendar year. The employer is responsible for notifying each employee by March 15 of the amount, if any, of any excess SEP contributions to that employee’s (i) the amount of the excess contributions attributable to that employee’s elective deferrals; (ii) the calendar year for which the excess contributions were made; (iii) that the excess contributions are includible in the affected employee’s gross income for the specified calendar year; and (iv) that failure to withdraw the excess contributions and income attributable thereto by the due date (plus extensions) for filing the affected employee’s tax return for the preceding calendar year may result in significant penalties, with a reference to Question 6 of Form 5305A-SEP for further information concerning possible penalties. If you wish, you may use the model form we have included for this purpose on page 5 following the “Model Elective SEP Deferral Form.” If you already have issued W-2s to your employees by the time of the notification of the excess SEP contributions, you must also issue to the affected employees any required forms that reflect the fact that excess SEP contributions must be included in an employee’s taxable income. $60,000. In February of 1988, X calculates the ADP test for 1987 for the SEP and discovers that A’s maximum permissible SEP-IRA contribution for 1987 was $3,500. A is the only employee of X with excess SEP contributions. Therefore, on February 20, 1988, X notifies A that A had an excess SEP contribution of $500 for 1987. In addition, X issues the required form to A on that date that specifies that A’s corrected taxable income for 1987 was $60,500. X is not liable for the 10% tax on excess SEP-IRA contributions because he notified A of the excess SEP-IRA contributions by March 15, 1988. To avoid excess SEP contributions with respect to which you must notify employees you may want to institute a mechanism that would monitor elective deferrals on a continuing basis throughout the calendar year to insure that the deferrals comply with the limits as they are paid into each employee’s SEP-IRA.
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Excess SEP Contributions. Amounts in excess of the deferral percentage limitation under Code Section 408(k)(6) will be deemed excess SEP contributions on behalf of the affected highly compensated employee or employees. The Employer will notify each affected highly compensated employee, within 21/2 months following the end of the Plan Year to which the excess SEP contributions relate, of any excess SEP contributions to the highly compensated employee’s SEP-XXX for the (a) The amount of the excess SEP contributions attributable to that Participant’s elective deferrals; (b) The calendar year in which the excess SEP contributions are includible in gross income, to the extent applicable; and (c) To the extent applicable, that the Participant must withdraw the excess SEP contributions (and allocable income) from the SEP-XXX by April 15 following the year of notification by the Employer. Those excess contributions not withdrawn by April 15 following the year of notification will be subject to the XXX contribution limitations of Code Sections 219 and 408 for the preceding calendar year and thus may be considered an excess contribution to the Participant’s SEP-XXX. Such excess contributions may be subject to the 6-percent tax on excess contributions under Code Section 4973. If income allocable to an excess SEP contribution is not withdrawn by April 15 following the year of notification by the Employer, the income may be subject to the 10-percent tax on early distributions under Code Section 72(t) when withdrawn.
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Excess SEP Contributions. (see instructions)
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Related to Excess SEP Contributions

  • Catch-Up Contributions In the case of a Traditional IRA Owner who is age 50 or older by the close of the taxable year, the annual cash contribution limit is increased by $1,000 for any taxable year beginning in 2006 and years thereafter.

  • Excess Contributions An excess contribution is any amount that is contributed to your IRA that exceeds the amount that you are eligible to contribute. If the excess is not corrected timely, an additional penalty tax of six percent will be imposed upon the excess amount. The procedure for correcting an excess is determined by the timeliness of the correction as identified below.

  • Allocation of Contributions You may place your contributions in one fund or in any combination of funds, although your employer may place restrictions on investment in certain funds.

  • Retirement Contributions On behalf of employees, the State will continue to “pick up” the six percent (6%) employee contribution, payable pursuant to law. The parties acknowledge that various challenges have been filed that contest the lawfulness, including the constitutionality, of various aspects of PERS reform legislation enacted by the 2003 Legislative Assembly, including Chapters 67 (HB 2003) and 68 (HB 2004) of Oregon Laws 2003 (“PERS Litigation”). Nothing in this Agreement shall constitute a waiver of any party’s rights, claims or defenses with respect to the PERS Litigation.

  • Contribution Allocation The Advisory Committee will allocate deferral contributions, matching contributions, qualified nonelective contributions and nonelective contributions in accordance with Section 14.06 and the elections under this Adoption Agreement Section 3.04. PART I. [OPTIONS (a) THROUGH (d)].

  • Contribution Amounts The Sellers and the Underwriters agree that it would not be just or equitable if contribution pursuant to this Section 8 were determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation that does not take account of the equitable considerations referred to in Section 8.7. The amount paid or payable by an indemnified party as a result of the losses, claims, damages and liabilities referred to in the immediately preceding paragraph shall be deemed to include, subject to the limitations set forth above, any legal or other expenses reasonably incurred by such indemnified party in connection with investigating or defending any such action or claim. Notwithstanding the provisions of this Section 8, no Underwriter shall be required to contribute any amount in excess of the amount by which the total price at which the Shares underwritten by it and distributed to the public were offered to the public exceeds the amount of any damages that such Underwriter has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omission. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. The remedies provided for in this Section 8 are not exclusive and shall not limit any rights or remedies which may otherwise be available to any indemnified party at law or in equity.

  • Payment of Contributions The College and eligible academic staff members of the plan shall each contribute one-half of the contributions to the Academic and Administrative Pension Plan.

  • Rollover Contributions A rollover is a tax-free distribution of cash or other assets from one retirement program to another. There are two kinds of rollover contributions to an IRA. Xx one, you contribute amounts distributed to you from one IRA xx another IRA. Xxth the other, you contribute amounts distributed to you from your employer's qualified plan or 403(b) plan to an IRA. X rollover is an allowable IRA xxxtribution which is not subject to the limits on regular contributions discussed in Part D above. However, you may not deduct a rollover contribution to your IRA xx your tax return. If you receive a distribution from the qualified plan of your employer or former employer, the distribution must be an "eligible rollover distribution" in order for you to be able to roll all or part of the distribution over to your IRA. Xxe portion you contribute to your IRA xxxl not be taxable to you until you withdraw it from the IRA. Xxur employer or former employer will give you the opportunity to roll over the distribution directly from the plan to the IRA. Xx you elect, instead, to receive the distribution, you must deposit it into the IRA xxxhin 60 days after you receive it. An "eligible rollover distribution" is any distribution from a qualified plan that would be taxable other than (1) a distribution that is one of a series of periodic payments for an employee's life or over a period of 10 years or more, (2) a required distribution after you attain age 70 1/2 and (3) certain corrective distributions. If the entire amount in your IRA xxx been contributed in a tax-free rollover from your employer's or former employer's qualified plan or 403(b) plan, you may later roll over the IRA xx a new employer's plan if such plan permits rollovers. Your IRA xxxld then serve as a conduit for those assets. However, you may later roll those IRA xxxds into a new employer's plan only if you make no further contributions to that IRA, xx commingle the IRA xxxlover funds with existing IRA xxxets.

  • Initial Contributions The Members initially shall contribute to the Company capital as described in Schedule 2 attached to this Agreement.

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