My wife and I contributed the maximum for our age ($11,000 combined) to a Roth IRA for the 2015 tax year. It turns out we unexpectedly made too much money to be eligible at all. I shouldn't have contributed anything.
I know my options (convert to traditional IRA, pay 6% penalty, etc) and I just want to take out the money and then put it back in for the 2016 tax year when we will be eligible again. My question is how this affects taxes for 2015 and 2016.
I'm removing the excess now and will get a 1099-R (for the earnings on the excess and 10% penalty) that I will use when I file my 2016 taxes, but does this affect 2015's taxes at all?