Dan14
Level 1

My client qualifies for RMD from his SEP IRA but over contributed to the IRA in 2021.  The excess contribution was distributed in 2022.  Does that distribution satisfy the 2022 RMD?

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Terry53029
Level 15
Level 15

Wouldn't think so, as it was not a distribution, but removing funds that didn't belong there in the first place. The reason for RMD's is to start paying tax on funds that have been tax deferred.