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1.) The contribution part of a correcting distribution is not taxed or penalized when the overcontribution is corrected promptly.

The IRA administrator would calculate the actual required distribution amount. Since taxes and penalties only apply to the income associated with the over contribution, it would be a minor amount.

3.) The previous post covered the option of recharaterizing the contribution to an after-tax TIRA. A form 8606 would need to be filed to establish your cost basis.
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