When I prepared my 2019 Taxes using Turbo Tax Premier, it turns out that I made an excess contribution in the amount of $89.00 to my IRA for 2019. I indicated that I would withdraw this excess contribution before April 15, 2020. My IRA is held at a brokerage company. When I requested the brokerage company to distribute $89.00 excess contribution, (I had $89.16 cash in the account), the brokerage firm emailed me a confirmation of the $89.00 Excess Removal (which was deposited to my external bank account), but my bank account indicates a transfer of only $80.01. When I called my brokerage account customer service, they told me that the IRS requires them to calculate the withdrawal amount based on the total value of the account for purposes of assessing a gain or loss on the excess contribution, even though I had sufficient cash in the brokerage account to cover the Excess Withdrawal (not sure I understand this, since I had sufficient cash in the account to cover the distribution). My question is: since the actual cash transfer from my brokerage account to my bank account is only $80.01, have I in fact removed the 2019 Excess Contribution of $89.00, or do I need to withdraw additional funds from my IRA to fully cover the $89.00 2019 Excess Contribution? Thank You!
