Thank you very much for your detailed answer, Dana! I will try to revisit this tonight or tomorrow given your instructions. I greatly appreciate all of the guidance. This was a one-off year, and I did not even know there was an income limit for Roth contributions until TT flagged it.
I thought I had both entered the $7k and then removed it as you suggested ("Another option is to enter the $7,000 Roth contribution and then enter that you removed the excess contribution amount ($7,000 disregard the loss here) by the due date on the penalty screen at the end of the IRA contribution interview."), but I believe that had generated the 6% penalty. I'll need to check again to be sure, but that is what I recollect.
Also, I would rather not have to amend my 2022 return in 2023, so I may follow your well defined instructions. I am not expecting any withholding since I instructed Vanguard not to do that. I assumed that with a loss nothing would generate anything that would need to be withheld.
Thank you again,
--Ken
