I had clients make 2024 IRA contributions. Husband made his contribution in July 2024, wife made hers in April 2025 right before the 4/15/25 deadline. They are on extension for their 2024 taxes. The wife failed to tell me she started being covered by a 401k plan in 2024 so she and her husband are not eligible to deduct these contributions. I think the best option is to remove the 2024 contributions (and associated earnings) now, rather than tracking basis. If the husband contributed $8,000 into his IRA for 2024 and by the time the funds are removed later this month, say the earnings were $1,000, so $9,000 total is removed from his IRA, are the $1,000 of earnings taxable on his 2024 tax return or 2025 tax return? What if there were losses on the contributions? I assume no deduction for losses if the IRA contribution is removed.