return of excess contribution:
before tax filing date including extension: positive earnings allocable to the excess are taxable on the Line 4b for the year of the contribution. negative earnings are ignored; in which case, for purposes of basis, consider the original requested amount as returned.
You must have a) filed by tax day, or b) requested an extension of time to file by tax day to take advantage of the Oct 15 deadline.
positive earnings removed are no longer penalized 10% when you are under age 59 1/2. (eliminated in 2023)
@MNYL
