*****************if you successfully submitted the 2021 return then you'll have to amend it by removing the amount you say you contributed. you had until 4/15/2022 to remove the real excess without penalty. you also had to remove any income earned on that excess and pay taxes on it. now the only way to avoid continual year-after-year penalties on that is to under-contribute the maximum by that excess. you then get a deduction for the excess to bring you up to the max for that year.
***************Because the penalty is based on the amount of excess or the amount of value of the account, whichever is smaller, it would also be possible to eliminate the excess, if you spent the account down to zero. However, if you don’t have a large medical expense, then the withdrawal would be subject to a 20% penalty, on top of the penalties you have already paid, so I don’t think this is the way to go.
