Updated
Why can't I create a Prior Year SEP IRA contribution on Wealthfront?
SEP IRA contributions are a little different than other IRA contributions. In short, SEP contributions are designated as a contribution for the calendar year in which they are made. From the IRS website:
Why is last year’s contribution that was made this year for the SEP-IRA shown on this year’s Form 5498 instead of last year’s Form 5498?
The IRS requires contributions to a SEP-IRA to be reported on the Form 5498 for the year they are actually deposited to the account, regardless of the year for which they are made.
What this means is that we'll report your contributions made in 2020 as 2020 contributions, and any contributions made in 2021 as 2021 contributions. However, you can still file the contribution for the Prior Year on your taxes as long as you made your deadline.
Wealthfront prepared this article for informational purposes and is not intended as tax advice nor as an offer, recommendation, or solicitation to buy or sell any security. Wealthfront does not represent that any strategy will result in any of the outcomes described, including the effectiveness of any strategy in reducing tax liability, as this depends on an investor’s specific tax and investment profile. Investors are encouraged to consult their personal tax advisors regarding their unique circumstances and any outcomes/consequences that may result from any investment strategy. Investors and their personal tax advisors are responsible for how the transactions in an account are reported to the IRS or any other taxing authority.
Wealthfront and its affiliates may rely on information from various sources we believe to be reliable (including clients and other third parties), but cannot guarantee its accuracy or completeness. See our Full Disclosure for more important information. Financial advisory and planning services are only provided to investors who become clients by way of a written agreement. All investing involves risk, including the possible loss of money you invest. Past performance does not guarantee future performance.
Financial advisory, planning, and investment management services are offered by Wealthfront Inc. (“Wealthfront”), an SEC registered investment adviser. Brokerage products and services offered by Wealthfront Brokerage Corporation, member FINRA / SIPC, and a wholly-owned subsidiary of Wealthfront.
Comments are moderated prior to publication