rcarter99
New Member

Roth IRA excess contribution in 2021 with negative return. TurboTax shows I still over contributed

I contributed $7000 to a Roth IRA in 2021. 

Today, TurboTax calculated my MAGI and now I find my income in 2021 was too high to contribute anything to a Roth IRA in 2021.

My Roth IRA is currently (February 2022) worth only $6400 due to drops in the stock market in 2022. That is $600 less than what I contributed.

I plan to remove the excess contributions; however, the maximum I can withdraw is the value of the account, which is $6400.  When I enter that into TurboTax, it says I still have an excess $600 contributed in 2021 and TurboTax shows a tax on that excess contribution.

I was also covered by a retirement plan at work in 2021, so I can't move this contribution to a Traditional IRA.

 

My questions:

(1) What do I need to do for TurboTax to show $0 tax due after I empty out my Roth IRA?

(2) Am I required to "contribute" the lost $600 from some other source, and if so, where do I put it?