Excess Contribution to Roth

[AZ-Tax]

Ok, so my software shows me the amt the TP has for excess contributions lets call it $2000 on a $5000 contribution. My software also says TP already has a penalty. Am I correct that the TP cannot get out of the penalty but does TP have to withdraw the $2000 excess contributon?

[BP.]

TTB p. 13-10

[Peachie]

Why can't she get out of the penalty?

Ok, so my software shows me the amt the TP has for excess contributions lets call it $2000 on a $5000 contribution. My software also says TP already has a penalty. Am I correct that the TP cannot get out of the penalty but does TP have to withdraw the $2000 excess contributon?

The 2011 tax season isn't over yet. She has until the deadline to withdraw the excess and the earnings associated with the excess. This is my understanding. I just had a client do this last week.

Peachie