My son contributed the max $6.0k to his Roth in 2020, he now learned that his income is too high for the contribution. Such contribution has earned ~$3.0k in earnings. Schwab said he needs to withdraw both the $6.0 and the earnings. Our question is about the earnings, can he roll that over into a Rollover IRA and avoid paying tax and possible 10% penalty? Or is he better off, paying the tax+penalty and keeping the cash? Big thanks to all for your input.
