Roth-Excess Earnings 6% or 10%

[zeros]

Client withdrew his contribution because he was not eligible to contribute to one. The earnings would be taxable in the year of contribution, as I understand. If I fill out the form 5329 the software computes a 6% penalty on the earnings. Should it be 6% or 10% like it would be considered a "premature" distribution penalty?

[skhyatt]

Only on the earnings

The earnings would be subject to the 10% premature distribution penalty.