I have a Roth IRA account through Merrill and have contributed $4,000 to it so far this year (2025). However, recently realize I will be making too much money this year to contribute to my Roth IRA. I read online that I can remove the excess contribution so I transferred the money out of the Roth account. Unfortunately, I realized I did this wrong and the withdrawal was done as a distribution withdrawal instead of a excess contribution withdrawal. I tried calling Merrill to see if it can be corrected but they said there's nothing they can do and a tax form has already been generated and will be sent to the IRS. They said I'll have to talk to a tax advisor to see if there's anything I can do.
I was wondering if this is something I can correct myself in the TurboTax app when filing my return next year? If so, how?
I still want to contribute the max allowed for this year so I was thinking of contributing $7,000 to a traditional IRA and rolling it over to the Roth. Would there be any issue with this or should I play it safe and only do $3,000?
As far as earnings from the contributions, I actually lost a money from the account overall since making the contributions.
Thanks for any information or advice in advance!
