M1 Finance

M1 explicitly states: 'M1 cannot calculate your NIA on your behalf.' The user must compute NIA themselves using the IRS formula and include it in the withdrawal amount.

Known quirks

1. 1Account holder must self-calculate NIA. M1 explicitly disclaims doing this. This is the single biggest user-facing difference vs. Fidelity.
2. 2For multi-year excess, NIA must be calculated for each year separately.
3. 3Carry-forward method (applying the excess to a future year's contribution room) cannot be used to recharacterize between Traditional and Roth.
4. 4Pie-rebalance behavior makes per-lot tracking harder; reconcile against your own NIA calculation using daily-balance method.

Submission method

In-app only — Move Money → One-Time Cash Transfer, entering the excess + NIA amount and selecting the matching withdrawal reason.

Process at M1 Finance

1. Confirm the contribution is in fact excess (limit lookup, MAGI check).
2. Compute NIA — required; custodian will not calculate.
3. Submit the Excess Contribution Removal.
4. Allow processing time per the custodian's stated SLA (typically 3–10 business days).
5. Receive Form 1099-R (IRA) or 1099-SA (HSA) the following January with the applicable distribution code (8 / P for IRA current vs prior-year correction).
6. Report the earnings (NIA) as taxable income — in the year of the original contribution per IRC §408(d)(4).

Also relevant

• All custodian guides — index of every custodian we've verified.
• Run the NIA calculator — produce the earnings figure to bring to M1 Finance's form.
• Removal decision tree — confirm the corrective path before initiating.
• When to file — Apr 15 / Oct 15 windows that gate timely removal vs. the §4973 6% excise.
• What counts as excess — IRA cap, Roth MAGI phase-out, and combined-cap aggregation.