@fanfare wrote:
"tell the custodian to process a removal of excess contributions. "
@Opus 17
The custodian just told the owner that they would not do that.
The custodian can't process a return of excess for the 2024 contribution to an IRA because it has since been converted to a Roth IRA. The taxpayer can't remove the 2024 excess and has to pay the 6% penalty. That's a closed issue.
What I am talking about is that, to remove the excess in 2025, the taxpayer could remove part of their 2025 contributions. I agree that, if the 2025 contributions have also been converted from a traditional to a Roth IRA, the custodian may be unable to process a return of excess, but it was not clearly explained if that had also happened. In that case, the taxpayer can still clear the excess by making a regular withdrawal from the Roth IRA.
