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EXPANDED ANSWER 1. WITHDRAW EXCESS CONTRIBUTION Before the Tax Filing Deadline (including extensions): You can avoid the 6% excise tax penalty by withdrawing the excess contribution and any associated earnings by the tax filing deadline (typically April 15th, or October 15th if you file an extension). Taxable Earnings: Any earnings associated with the excess contribution that are withdrawn will be taxable as ordinary income. You might also face a 10% early withdrawal penalty on the earnings if you're under 59½ years old, unless an exception applies. TurboTax Reporting: When you withdraw an excess Roth IRA contribution and its earnings before the tax filing deadline, you don't typically report the excess contribution itself on your tax return as it's been corrected. However, the earnings from the excess contribution are taxable. To report this in TurboTax, you would typically: Create a substitute Form 1099-R (as you likely won't receive a formal one until the following year). Enter the total distribution (excess contribution + earnings) in Box 1 and the taxable earnings in Box 2a. Enter codes P and J in Box 7. Indicate that the year on this Form 1099-R is the tax year after the contribution year when asked. On the "Did you use your IRA to pay for any of these expenses?" screen, enter the earnings under "Corrective distributions made before the due date of the return.   2. RECHARACTERIZE THE CONTRIBUTION Deadline: You can recharacterize your Roth IRA contribution as a traditional IRA contribution if you do so by the tax-filing deadline (including extensions). Process: This involves transferring the excess amount and any earnings from your Roth IRA to a traditional IRA. You should contact your IRA custodian for the necessary forms and procedures. Tax Implications: A recharacterization is a reportable transaction to the IRS but is not considered a taxable event. However, the earnings associated with the excess contribution will be treated as earnings in the Traditional IRA. TurboTax Reporting: You will need to report the recharacterization on your tax return, using IRS Form 8606. TurboTax will guide you through this process, which generally involves indicating that you recharacterized your Roth IRA contribution and entering the relevant details.  IMPORTANT CONSIDERATIONS Timing is Crucial: The most straightforward way to correct an excess contribution is to withdraw it (plus earnings) before the tax filing deadline. Form 5329: If you don't correct the excess contribution by the deadline, you'll generally be subject to a 6% excise tax penalty each year the excess remains in your account. This penalty is reported on Form 5329, "Additional Taxes on Qualified Plans (Including IRAs) and Other Tax-Favored Accounts". Consult a Tax Professional: Navigating excess IRA contributions can be complex. Consider consulting a qualified tax advisor to ensure you handle the situation correctly and minimize potential penalties ** Please say "Thanks" by clicking the thumbs up icon in a post *** Mark the post that answers your question by clicking on the "Mark as Best Answer"