@Emy95
Ok, so there's the easy way and the hard way (and a really hard way).
The hard way is to go back to the broker, call and ask for a supervisor, and explain that you have an extension. You might offer to fax them proof of your extension and a copy of pages 42-43 of publication 590-A.
https://www.irs.gov/pub/irs-pdf/p590a.pdf
However, as @fanfare says, this is really none of their business, it's between you and the IRS whether your withdrawal is considered timely.
If the broker agrees, then you report the entire Roth contribution. When Turbotax tells you it is excess, you agree that you will remove the excess before the (extended) deadline. Then, you need to create a substitute 1099-R for the withdrawal (because you won't get a real 1099-R until January). For the substitute 1099-R, enter the full amount of the withdrawal in box 1, the taxable earnings in box 2a, and use codes "P" and "J" in box 7.
The really hard way is to figure out the withdrawal amount yourself (the formula is available online), ask for a regular withdrawal, and report it in the same way I described. The problem is that your paperwork will not match and the IRS may eventually come to you asking for an explanation.
The easy way is to leave the money in the Roth IRA and pay the 6% penalty on the excess portion of the contribution ($132). Then, for 2025, you have three options.
- a. Leave the excess in the account and pay another 6% penalty on your 2025 return.
- b. If you have earnings from work in 2025, you can apply the excess toward your 2025 limit. For example, if your 2025 earnings are $5000, you could contribute $2800, and the $2200 excess carryover will be applied to "fill up" your 2025 limit, and it will no longer be considered excess. Note that if you already made too much 2025 contributions, it should be easy to remove them as excess since it is not even the end of the year yet.
- c. Make a regular withdrawal of $2200. It will not be taxable because withdrawals of Roth contributions are never taxable (unless you already withdrew all your past contributions and are now dipping into earnings). You do not have to remove any earnings, just the $2200 excess contribution. (The penalty on the earnings was covered by the 6% on your 2024 tax return.) Don't ask for anything special, just a regular withdrawal of the excess amount. This will work itself out on your tax return.
Item (c) is worth considering if your growth/earnings this year are close to or more than 6%, because your penalty will be more than offset by account growth. Item (a) is also worth considering if your growth is more than 6% and you don't have wages in 2025 but expect to have wages in 2026.
It all depends on how much of a fight you want to put up to not pay the 6% penalty on your 2024 return. (For what it's worth, my Roth IRA is up 10.1% over the last 12 months, but it will depend on what you invested in.)
