I am 52 years old and have 2 Roth IRA accounts with Fidelity and Vanguard. Accidently I exceeded my 2021 contribution limit by $2500. I would like to apply excess to 2022. Vanguard notified me that they're not able to apply excess contribution to current (2022) year and I have to withdraw the excess contribution plus earnings. I argued that according to IRS publication 590A : "
Applying excess contributions.
If contributions to your Roth IRA for a year were more than the limit, you can apply the excess contribution in 1 year to a later year if the contributions for that later year are less than the maximum allowed for that year."
I understand that I will still pay 6% penalty but would avoid paying 10% early withdrawal taxes plus taxes on earnings. What would be the suggestion?
