@SageofW wrote:
I see that Turbotax has an amended return option. Do I perform all the reporting steps there? When you say to report the excess to Turbotax, isn't that what I included in the original filing? So therefore, I would go to the amended return option and report that I will withdraw the excess before the deadline, and thus get credit back for the penalty?
It should be easy to follow. When you originally filed and reported the $7500 contribution and Turbotax told you it was excess for 2024, it should have given you the option to say "I will withdraw the excess before the filing deadline" and you must have said "no." When you start the amending process, go back to the IRA contribution section, review or "revisit" your answers, and change your answer to "yes, I will remove the excess."
Then go to the income page, go to the section for 1099-R (retirement income), select that you will enter it yourself, and check the box for substitute 1099-R. Enter the total withdrawal in box 1, the taxable earnings in box 2a (this figure will come from the custodian) and enter code P and J in box 7.
