Hope this becomes an active thread...
Here's my unsanctioned thoughts:
1) I'm not sure why you go through the trouble of making a tax-deferred IRA contribution only to immediately follow up with a taxed withdrawal for ROTH deposit. I'm curious what loop(hole) you're jumping through for this 'booking' activity.
2) As for the excess, simply withdraw the excess before your taxes are due and before filing your return. TT should have a menu taking you through the recording of the transaction resulting in a Form ?5329? .
3) And since compounded investment gains and taxes are multipliers following the commutative property of multiplication any tax-deferred investment merely pushes the income to a future tax-bracket and nothing else. Therefore, there should be little concern regarding any "gains" that may have been earned while the excess was in the IRA.
