When moving money from an IRA to a taxable account you can choose to make a regular/premature distribution or a removal of excess contribution.
Money movements from an IRA (Traditional, Roth, SEP) to a taxable account (Personal, Joint) are viewed as IRA distributions. When you are above the retirement age (59.5 years old), this is considered a regular IRA withdrawal. When you are younger than 59.5, the IRS views these movements as premature distributions from your IRA. Come tax time, you may be required to pay a 10% early withdrawal penalty on the withdrawal unless you qualify for an exemption.
Removal of excess
In cases where you've over-contributed to your IRA, you can remove over contribution without penalty so long as the excess amount contributed is removed before the tax filing deadline of the year the contribution was made. Selecting this option will allow Wealthsimple to report your distribution as a removal of excess to the IRS.