I apologize in advance for how stupid and complicated this mess is. Any help is appreciated.

I'm self-employed. I have W2 and 1099 income. In March 2015 I filed my taxes, received my refunds several weeks later. After learning about SEP IRA's, I decided to create one and contribute money to it for 2015 before the filing deadline. My plan was to then do an amended return to reflect this.

It turns out I'm not eligible AT ALL to contribute to a SEP for 2015 because my business reported a net loss. Also, I've already done the full traditional IRA contribution.

I'm wondering: if the account and the contribution are so new, and since none of this has been reported to the IRS yet, and because I haven't deducted the contribution, what penalties must I face? Can the account be converted to a 401K? Am I supposed to just withdraw all the money immediately?

I'd like to know what my options are at this point. I want to legitimize everything while minimizing penalties.

Thanks for your help!