Hi DMS3470,
Assume you are under age 50 and has an income level that you are not eligible for a direct Roth IRA contribution, so you did a "backdoor Roth" for tax year 2022.
A Backdoor Roth is to contribute $6,000 to a Traditional IRA as a nondeductible contribution, then converted it to an Roth IRA account. The limit for any IRA related contribution is $6,000 ($7,000 if you age 50 or older).
Therefore, the $6,000 to an self-directed Roth IRA is excess contribution for tax year 2022. Below is what IRS Pub 590-A, page 42 says:
Quote
For purposes of determining excess contributions, any contribution that is withdrawn on or before the due date (including extensions) for filing your tax return for the year is treated as an amount not contributed. This treatment only applies if any earnings on the contributions are also withdrawn. The earnings are considered earned and received in the year the excess contribution was made.
Unquote
https://www.irs.gov/pub/irs-pdf/p590a.pdf
Therefore, you need to withdraw $6,000 + earnings before April 2023 to avoid 6% additional tax on Form 5329, Part IV.
https://www.irs.gov/pub/irs-pdf/f5329.pdf
Hope the above helps.
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