To clarify, you moved the funds to a regular bank account out of the Roth IRA in March 2024? Then you should have gotten a 2024 Form 1099-R for the distribution. If you requested the withdrawal of excess contribution plus earnings then your 2024 Form 1099-R should have codes P and J. The earnings are taxable in the year you made the contribution. Therefore, this will have to be reported on your 2023 return. Please see How do I amend my federal tax return for a prior year? Please check with your financial institute where you can find the 2024 Form 1099-R.
Or do you mean it was closed in March 2025? If this is the case then you will have to pay the 6% penalty on your 2023 and 2024 return for the excess contribution. Since this was after the due date you were required make a regular distribution and you only had to withdraw the excess without earnings. You will receive a 2025 Form 1099-R with code J (if you are under 59 1/1). If you are over 59 1/2 the code will be T or Q. You will enter this Form 1099-R next year on your 2025 return and it will resolve the excess contribution.
On your 2024 return to pay the 6% penalty:
- Click on “Jump to IRA contributions"
- Select “Roth IRA”
- On the "Do you have any Excess Roth Contributions" answer "Yes"
- On the "Enter Excess Contributions" screen enter the total excess contribution from 2023
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