Do I need to withdraw the earning from previous year's excess contributions on Roth IRA after I have withdrawn the contributions?

[leonxu9]

I made excess contributions on Roth IRA in 2022 and 2023, only withdraw the contributions in 2025. I have filed amended return and paid for the 6% penalty for 2022 and 2023 (2024 tax is still preparing). The question is that do I need to withdraw the earnings from those contributions as well?

[ThomasM125 · Accepted solution]

No, once you pay the 6% penalty tax, you don't need to withdraw the earnings, you can leave them in going forward without further penalty. If you make an excess contribution in the current year and correct it before the due date of your tax return, then you do need to withdraw the excess earnings and pay tax on it though.