return of excess contribution: Case 1.
before tax filing date including extension: positive earnings allocable to the excess are included in income on 1040 Line 4b for the year of the contribution. negative or zero earnings are ignored; in any case, for purposes of basis, consider the original contribution amount as returned.
--
In this Case, there is no penalty.
If you took a deduction (unlikely) and filed,, that would have to be undone by amendment
@egg1
