I'm in the process of having my Roth IRA contributions + interest removed from my Roth IRA for 2003 and 2004 because I'm not technically allowed to contribute as my adjusted income is $0.
I understand that if I remove the contributions and interest from 2004 before I file my return then the IRS considers them to never have been contributed in the first place.
I'm more confused about 2003's contributions. I did have to pay the 6% excess contribution penalty last year for the 2003 return so that was ok. But now that I'm removing these contributions as well before filing this year's return will the IRS hit me with 10% tax for early withdrawal and/or other penalties or tax? Or now that I'm removing all traces, do they now consider them to have never been contributed?
The trustee is going to take all of the money out of the Roth IRA and have to give back to me. I don't know whether this is considered an early withdrawal?
Thanks for any help,
Matt
