Need guidance for correcting Roth IRA contribution-distribution mistakes
College-going son and I are seeking advice on rectifying his **Roth IRA contribution-distribution** mistakes. Making up numbers for ease of understanding but the dates are correct.
1. On **Jan 20th 2026**, the Roth IRA balance was $9500 ($9495 invested and $5 in cash)
2. On **Jan 21st 2026**, son added $500 to his Roth IRA. MISTAKE #1 was that he added it as a 2026 contribution instead of 2025. He has income only for 2025 and not for 2026. The balance became $10,000 ($9495 invested and $505 in cash)
3. On **Jan 30th 2026**, realizing the incorrect year contribution, he withdrew $505 (this was MISTAKE #2) and had it transferred back to his bank account - This was obviously categorized by Fidelity as EARLY DIST NO EXCEPT EARLY DST/NO EXCP.
How do we fix this to achieve the below outcome?
Expected correction:
1. Avoid all early distribution penalties / taxes
2. Add that $505 back into Roth IRA but as a 2025 contribution
3. Fidelity IRA summary shows 2026 contribution as $500; will it show $0 after rectifying the mistakes, and increase the 2025 contribution?
TIA