$26 excess SEP contribution

[Margaret CPA in OH]

Client accidentally contributed $26 more into her SEP than allowed. When discovered, quickly, excess was repaid plus 9 cents interest.  It isn't reported on 5329 but I think a 6% excise tax is due - all of $1.56 - but that entails Form 5330 but not in the 1040 series.  Forget about this?  My research seems to say that Fidelity (in this case) should issue a Form 1099R but I doubt that will happen for $26. Ideas?  The $26 is 7% of the contribution allowed.  Geez, I hate these small issues that eat up so much time.

[Catherine]

Your client may get a 1099-R next year for this - or maybe not.  They (the IRS) keep telling us not to bother with amendments that change taxes by less than $50, so unless/until I got a 1099-R, I'd ignore it.  But that's just me, and I spent the morning at the dentist, have a splitting headache, and there's not much right this minute that I don't feel like ignoring...  

[Margaret CPA in OH]

Thanks, Catherine.  Seems like a good plan.  Your plan should be to go home, be good to yourself and start fresh tomorrow, even later today if the headache is gone.  I begin a crown process March 21, day after my birthday.  I intend to be very good to me that day.