Return of Excess Roth IRA contribution as insufficient funds by Fidelity

[jackkgan]

Hi there,

I contributed $7k to Fidelity Roth IRA in Jan 2025 but realized now that there is income limit.

I submitted Return of Excess contributions + earnings 2 days ago, but as there was ~$200 loss today due to the market, the proceeds were only going to be ~$6,800k. Fidelity sent me the message below. Do I have to wait till the market picks up for me to do this transaction or what's the best step forward?

Your distribution request remains pending and is about to expire in 3 days due to insufficient funds.

If you would like to cancel your distribution request, please go to Account History > Pending Transfers to cancel the request. Otherwise, please review your trade order status or view other ways to move money to your account by going to Accounts & Trade > Transfer Money/Shares > Review Other Ways to Make Deposit and Withdrawal.

[dmertz]

Your request should have been an explicit return of contribution, not an ordinary distribution, of exactly the $7,000 contribution.  Fidelity would then calculate the earnings attributable and distribute the reduced amount.  Make sure that you have a sufficient amount of funds that are invested only in cash before initiating the return of contribution.  If the entire account balance is attributable to only this $7,000, make sure that all of it is invested in cash before initiating the return of contribution.  Otherwise, remember that the net income attributable is calculated over the entire account, not just the particular investment in the account purchased with the $7,000 contribution.