Thank you for the response @Opus 17!
@dmertz My situation is slightly different than the OP. My AGI falls between the reduced contribution limit range. Here is a summary breakdown:
2024 Calculated Excess Contribution: $3,000
2024 Roth Contribution: $7,000 - all withdrawn in January 2025.
2024 Contribution Earnings: $1,100 (calculated by Vanguard from the $7,000 withdrawn contribution)
Per @Opus 17 , since only $3,000 is considered excess contribution based on my AGI, technically about ~$500 is the excess earnings that is eligible for penalty exception, while the remaining $600 earnings is subject to 10% penalty.
However, @Opus 17 also said that priority for regular Roth IRA withdrawal is contribution first, earnings last. Under this priority, $3,000 is excess contribution, $500 is excess earnings, and $4,600 can be claimed as "regular contribution withdrawal." I have had my Roth IRA for 10 years, contributed to it each year.
Any suggestion is appreciated, @dmertz ! 🙏
