dmertz
Level 15

Retirement tax questions

There is no early-distribution penalty on a regular distribution of $6,000 because it's a distribution of Roth IRA contribution basis even though it was an excess contribution.  In addition to the $6,000 appearing on Part IV of your 2021 Form 5329 the $6,000 will appear on Part III of your 2021 Form 8606 to calculate a taxable amount of $0.  Since the taxable amount is $0, there is no early-distribution penalty either.