Based on what I understand from my exchange earlier in the thread - Because you had excess contributions in tax year 2021(edit* this is ONLY if it carried over from a prior tax year, correcting myself per macuser22’s response) , even if you removed it before the tax filing deadline in 2022, you are still subject to the penalty of 6% for tax year 2021 because that 2021 money was not taken out on or before 12-31-2021. I had a similar frustrating situation where in tax year 2020 I had an excess contribution and didn’t know it carried over in 2021, so I’m paying for two years of penalties and finally now removing it this year so that I’m not penalized a third time for the 2022 tax year.
In this case more relevant to your situation, I did have excess of contributions separately in tax year 2021 and I did widthdraw the excess and recorded a loss. In that case I elected to fill out my own 1099-R and say it’s for year 2022. I don’t recall getting penalized for the 6% though. I also made sure to indicate that I didn’t over contribute by updating my Roth IRA contribution amount to the calculated allowed limit.
