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I made an excess contribution once -- and had the money distributed to me by calling the custodian (Vanguard). I believe they figured the gain by taking into account: (1) the overall value of the IRA, (2) and percentage of the IRA that was my excess contribution, and (3) the length of time that my excess contribution was "at work" in the producing the gain. Everything was pro-rated, income was determined, and Vanguard informed the IRS of this.

I suggest you call your custodian and see how they handles excess contributions. (You may be going through this for the first time, but your custodian has probably gone through it hundreds of times.)

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