Request your advice on how to go about if the proceeds of sale from Return of Excess contribution to Roth IRA (withdrawn due to income limit) would be less than the total contributions or should Fidelity/me transfer money from my other accounts to make up for the difference? Will that change anything with respect to filling my taxes?
Context: I had made $7000 Roth IRA contributions in Jan 2025 without realizing that there is an income limit of $150,000. (for single) for Roth IRA. I submitted the Return of Excess contribution form to Fidelity and received the following confirmation email. As the total amount returned would be only $6793.03 and not $7000, will that change anything or should I be selling more to compensate for this difference? Thank you!
- Excess contribution amount was $7000
- Total applicable earnings or loss for the computation period was $-206.97
- The total amount to be returned is $6793.03