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@Just-Lisa-Now- wrote:
hey Rick, I have this situation, they pulled the excess out, but the account actually lost money while it was in there...so nothing to report and nothing to deduct, right?

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Correct.  IIRC there's some adjustment to basis that may need to be made (and may never be relevant).  i.e. if your excess contribution was $6K and to correct it you took out $5K you have to remove $6K from the basis calculation.  Check me on that though, I think it's in the 8606 instructions somewhere.  I don't remember where but you'll need to tell PS this somewhere so it doesn't compute a penalty on the $1K that wasn't taken out because it was lost.