DawnC
Expert Alumni

Get your taxes done using TurboTax

To steer clear of the 6% tax, file a withdrawal request. Contact your financial institution and request to withdraw the excess contribution, plus earnings, by the due date of the return (including extensions).    After you do that and have the amounts, you can report those amounts on this tax return before you file.   That will stop any penalties.   

 

The earnings are included as taxable income for the year the excess contribution was made.   

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