Excess Contribution to Roth IRA, but Didnt Use the Financial Institutions Excess Withdrawal Form

[jkm91]

I made excess contributions to my IRA for 2024 and 2025 and after realizing it, I withdrew the money + gains using the irs formula. My problem is that I withdrew the money without using the financial institutions excess contribution withdrawal form and just did an early distribution withdrawal through the online banking system. Is this a problem? My financial institution already told me they can not recode the withdrawal as an excess contribution withdrawal. What should I do?

[fanfare]

Your withdrawal  of your own contribution is not taxable but  may be an early withdrawal.

Meanwhile you have not resolved the excess contribution which is still in your Roth IRA

did you have positive gains?

enter the distribution on Line 5a and the taxable gains on 5b Use Code 2.

You will probably hear from the IRS since you are not paying your tax.

Maybe they will accept your explanation and maybe they will not.

@jkm91 

[fanfare]

You still have time to submit the correct form and get the excess out before Tax Day April 2015 with extensions

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return of excess contribution:

before tax filing date including extension: positive earnings allocable to the excess are included in income on 1040 Line 4b for the year of the contribution. negative earnings are ignored; in any case, for purposes of basis, consider the original contribution amount as returned.
["Include the earnings in income for the year in which you made the contributions, not the year in
which you withdraw them."]

Note: You must have a) filed by tax day, or b) requested an extension of time to file by tax day to take advantage of the Oct 15 deadline.

@jkm91