The Roth contribution interview will tell you that you have a penalty and ask how much of the excess was removed before the due date of the tax return, if it will be removed in March which is before the due date, then enter that amount of excess and no penalty will be applied.
The Roth trustee will need to return n ot only the excess but any earnings attributed to the excess while it was in the account and issue a 2019 1099-R in Jan of 2020. The earnings will be taxable income (also subject to a 10% early distribution penalty if you are under age 59 1/2). The 2019 1099-R should have a code "PJ" in box 7 meaning that it is a return of contribution taxable in 2018 since it was a 2018 contributions (the earnings are taxable in the year the contribution was made, not the year returned), That means that you would need to amend the 2018 tax return to add the 1099-R that you will not receive until 2020.
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
