Hi there, One more follow-up question:
Context: I had made $7000 Roth IRA contributions for 2024 and 2025 without realizing that there is a income limit of $150,000. (for single)
As per earlier suggestion, I called Fidelity and submitted the form to return my $7000 contribution made to Roth IRA in Jan 2024 + $801.85 earnings = $7801.85 . (I will do the same after it gets processed to submit request for return of my contributions of $7000 made in Jan 2025 for my 2025 Roth IRA with loss of $86 in 2025.). I hope I am on the right track now.
Questions:
1) I understand that I may have to pay taxes for the $801.85 earnings, but will I also have to pay any penalties? (I am 27 years old) . Would it be: IRS distribution - taxable = $802, IRS distributions -nontaxable = $7000?
2) Should I click Yes or No for below ? Because I did not exceed $7000, it's just that I did not realize that I was not eligible to contribute.
3) Is it ok to click No below as I did not withdraw before 2024 and only for the contribution made in 2024?
4) Please confirm if it is ok that I changed below to $0 as I am withdrawing this contribution
5) I clicked No for below as I think it is not a repayment.
6) Finally, please confirm what should I look for to ensure that I have entered everything properly.
Thanks a lot for your guidance!
