Yes, you are correct you need earned income or as the IRS states it taxable compensation (wages, salary, self-employment) to be able to contribute to an IRA.
You will have to request a withdrawal of the 2021 excess contribution and earnings with your bank to avoid paying paying a 6% penalty on the excess contribution. You will get a 1099-R 2021 in 2022 and the earnings will be taxable on your 2021 tax return.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
