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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?