Yes, you can apply the excess contribution to 2022 but you won't need to use Vanguard for that. You will be able to enter it on your 2022 tax return but you will have to pay the 6% penalty for 2021.
Please be aware, the 10% early withdrawal penalty is only on the earnings. But if you had a lot of earnings then it might be beneficial to leave the excess in the account, pay the 6% penalty and then apply the excess to 2022 (if you are allowed to make the contribution then).
Please follow these steps on your 2022 return to apply the excess to 2022:
- Click on "Search" on the top right and type “IRA contributions”
- Click on “Jump to IRA contributions"
- Select “Roth IRA”
- On the "Do you have any Excess Roth Contributions" answer "Yes"
- On the "Enter Excess Contributions" screen enter the total excess contribution from 2021 (if it wasn't carried over).
- On the "How Much Excess to 2021?" screen enter how much you want to apply to 2022.
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