No, you don't have to pay the 6% penalty if you removed the excess contribution plus earnings before the extended due date.
You don't need to enter Roth IRA contribution on your 2022 and 2023 return and TurboTax will not calculate the 6% penalty on Form 5329. If you entered the contribution then you can enter the excess contribution amount as withdrawn on the penalty screen at the end of the IRA contribution interview.
- Click on "Search" on the top right and type “IRA contributions”
- Click on “Jump to IRA contributions"
- Select “Roth IRA”
- On the "Do you have any Excess Roth Contributions" answer "No"
- Continue until the penalty screen and enter the excess contribution amount withdrawn.
You will have to pay tax on the earnings listed in box 2a on your Form 1099-R.
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