1) You can only recharacterize (or get a return of contribution ) before the extended due date of the 2015 tax return - Oct 17, 2016 after that is is an excess contribution that can only removed to avoid yearly 6% penalties. What I mean but a "normal" distribution, is just to take the money out. Do not tell them that this is a removal of excess contribution because that cannot be done for a 2015 contribution and they might code the 1099-R improperly. The 2017 1099-R should have a code "J" or "Q" in box 7 depending if you are under age 59 1/2 or over and not a code "JP" for a return of excess contribution.
2) Yes, I mean that you must take a distribution from the Roth IRA before the Oct 18 extended due date equal to the excess.
3) For 2016 if the 2015 excess carried over to 2016 by transferring the 2015 information into 2016 then you would need to remove that from the 2016 IRA contribution section. But since you never reported (I assume) the excess on the 2015 tax return, then it probably is not in the carry-over information at all so will not be on the 2016 return as an excess. That is why I suggest that you look on the 2016 1040 line 59 just to be sure that it did not carry over. If it did, then go through the IRA contribution interview, check the Roth check box, do not enter a new contribution and click through until the excess contribution shows up. If the excess box is auto-populated with the 2015 excess carry-over amount enter 0 (zero) to remove ti and that will also remove the penalty since you are going to remove it from the Roth account before Oct 18. You don't want to pay the 2016 penalty as long as you intend to remove it.
**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.**
