Roth and traditional IRA contribution and withdraw same year.

[Oxford]

This Year, around April, I put $3500 in traditional and $2000 in Roth IRA for 2017. I withdraw all these money from both IRA during August. I know I will be taxed for both. But will I get panelty for early withdraw, since I have not reported yet as contribution yet?

[fanfare]

Did you inform the custodian that you desired to reverse those contributions ?

[Oxford]

No. I didn't see such options on the form I filled.

[vijaychandanredd]

I have the same problem. Could you please share how you resolved this or reported this

[fanfare · Accepted solution]

"If you made IRA contributions in (this tax year), you can withdraw them tax free by the due date of your return.
If you have an extension of time to file your return, you can withdraw them tax free by the extended due date

You can do this if, for each contribution you withdraw, both of the following  conditions apply.

You did not take a deduction for the contribution.

You withdraw any interest or other income earned on the contribution. You can take into account any loss
on the contribution while it was in the IRA when calculating the amount that must be withdrawn. If there was
a loss, the net income earned on the contribution may be a negative amount."

To do this,you would ask the custodian to withdraw the contribution and associated earnings.

Since you did not inform the custodian, the custodian probably did not do the associated earnings calculation.
You should contact them for the information, and to complete the withdrawal correctly.