Withdrawal of Excess Roth-IRA Contribution

[flosfur]

During 1999 I contributed 2k to Roth IRA. Because of my income level, I was in-eligible to make the contribution and I withdrew the investments purchased with the contribution on 4/17/2000. The value of the investment at time of withdrawal was $700, a loss of 1,300 (ouch!). I received a 1099-R showing a distribution of $700.

1. Do I show $700 on Line 15a and zero on line 15b (taxable amount)of Form 1040?

2. How do I reflect the loss on my return?

What if I had made a gain on the investment – would I show the gains on line 15b of Form 1040? If under age 59½, am I subject to 10% early withdrawal penalty?

I am getting different answers from different experts, so please give cite if possible.

Thanks for help.