Prior year SEP contribution must be IN-HAND by April 15th (NOT POSTMARKED by 4-15) ??
I have in front of me a check to Fidelity Investments for $2,750.00 dated April 15, 2010. On it, I have marked in three places that I intend for it to be a Tax-Year 2009 contribution. The representative at Fidelity told me to do that.
However, I have come to learn that it can NOT (no matter what I wrote) be considered a Tax Year 2009 because SEP contributions (unlike other things) must be received (IN-HAND) by 4-15 (not postmarked by).
Why this is a big deal?
- It invalidates my 2009 return ? I took an illegal deduction. MORE IMPORTANTLY:
- I want to open a Self-Employed-401K next week. This is not allowed if I?ve already contributed to my Tax-Year 2010 SEP. I would appreciate your comments. Thank you.