someone made a prior year contribution in January, but then in march determined they made too much income and it would be non deductible, so they just want to take it back out before filing their taxes.  So they money went in and came out prior they them filing their taxes, but will be reported on two different years (prior year contribution / current year distribution):

1. do they still file an 8606 for prior year taxes as they did make a contribution for the prior year (even though they removed it prior to filing their taxes)

2. what form do they file to when they do current year taxes to show that the funds came out prior to deadline and should avoid the pro-rata taxation rules?

Funds have already been removed by the custodian… so there will be some taxes due on the gain, but they will be issued a current year 1099-R of course.

Thanks