Yes, you should have enter the $4,400 excess contribution as removed on the penalty screen at the end of the IRA contribution interview of your 2022 return. Another option is to not enter the Roth IRA contribution that your withdrew when you go through the IRA contribution interview.
- Click on "Search" on the top right and type “IRA contributions”
- Click on “Jump to IRA contributions"
- Select “Roth IRA”
- Continue until the penalty screen and enter the excess contribution amount of $4,400 as withdrawn.
You should not have any penalty calculated on Form 5329 since you removed the excess contribution (with a loss) in time. You can verify this by checking Schedule 2 line 8.
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