You will need to pay the 6% penalty on your 2024 and 2025 return since you did not remove the excess until 2026. The excess contribution will resolve when you enter the 2026 Form 1099-R with code J (if under 59 1/2) on your 2026 return.
Note, since you removed the excess after the due date of the 2024 return in 2026, you were only required to take a regular distribution without earnings. Fidelity should issue a 2026 Form 1099-R with code J (if under 59 1/2) since you requested the removal of excess contribution after the due date of the 2024 return.
On your 2025 return to ensure the 6% penalty is calculated:
- Click on "Search" on the top right and type “IRA contributions”
- Click on “Jump to IRA contributions"
- Select “Roth IRA”
- On the "Did you contribute more to a Roth IRA than was allowed in 2024 or any previous year?" answer "Yes"
- On the "Enter your excess Roth IRA contributions made in 2024 or prior years" screen enter the total excess contribution from 2024 (if it wasn't carried over).
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