"You could request the return of excess contribution plus earning for the 2024 contribution in amount of the new excess contribution since you contributed already the full amount for 2024. Then you would be able to apply this new excess from 2023 to 2024. In this case you would only pay the 6% penalty on your 2023 return."
OK but this is a complex solution. Not recommended.
My solution is much simpler. Just take out the $130 now and be done with it. There is no 2024 penalty
No wonder you're confused.
@pbartoli
