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Get your taxes done using TurboTax
Ignoring any transaction fees, an in-kind distribution from an IRA is equivalent to selling the shares within the IRA, distributing the cash and then repurchasing the shares outside the IRA.
If the IRA contained anything other than these shares, it's almost certain that an in-kind distribution of exactly the number of shares purchased with the excess contribution would not satisfy the requirements to be a return of contribution before the due date of the tax return. To satisfy the requirements, the adjusted dollar amount required to be distributed as a return of contribution would have to be determined based on teh performance of the entire account and then some number of shares that have a current value equal to the adjusted amount would have to be distributed.