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Retirement tax questions
Yes, typical people can withdraw the excess contribution plus earnings without issues and then have it reported on Form 1099-R with box 1 the distribution (contribution plus earnings) and box 2a the earnings.
It seems strange that they suggest not withdrawing the earnings since now you will have to pay the 6% penalty on the earnings left in the account.
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‎April 13, 2022
10:57 AM