I have a similar situation, but am getting a different answer from Fidelity where the account is held. I made contributions of $1,485 in 2019 to a traditional IRA. In Feb 2020 I opened a Roth IRA and contributed $7,000 for tax year 2019 (I am over 50) and $7,00 for tax year 2020, not realizing that I was only allowed to contribute $5,515 for 2019 to the Roth since I had already contributed $1,485 to the traditional IRA. Unfortunately, I did not realize the error when filing my 2019 taxes and did not withdraw the excess before the 2019 filing deadline, including extensions, which would have been 10/15/20. I plan to withdraw the $1,485 excess before the 2020 filing deadline of 5/17/21 and my understanding from everything I have read is that I would owe the 6% penalty on the $1,485 for 2019 & 2020 and my withdrawal would NOT have to include earnings since I am past the corrective distribution deadline. However, Fidelity is telling me that the earning will be withdrawn because the actual contribution was not made until Feb 2020 (despite the fact that it was designated for tax year 2019). They are also telling me I will not owe the 6% excise because withdrawing the contribution before the 2020 filing deadline makes it as if the contribution was never made. I think they are wrong since in May 2020 they issued me a Form 5498 showing $7,000 in contributions and I don't think they plan to amend that form. Is there any authoritative guidance out there for correcting excess contributions made in one year for a prior year and not corrected before the filing deadline?
