Thanks for you comments!
That all makes sense. My understanding from the form 5239 instructions is that I do not include any excess contributions on that form if I withdraw the excess and gains before the filing deadline. So what do you think about my option 4 above that I added?
4) Somewhere between 1 & 2. Report $12000 on line 16 and 17 of the 8606, resulting in zero taxable distribution of line 4b of 1040. Do not submit a form 5239 because the excess contributions were withdrawn before the filing deadline. (This assumes no gains.)
