You can request the the IRA custodian make an explicit return of the $7,000 contribution (not a regular distribution). The IRA custodian will make a distribution adjusted for investment gain or loss, accomplishing the return of the $7,000 contribution. The distribution will be reported on a code-P 2023 Form 1099-R that must be reported on your 2022 tax return if there are gains attributable to the $7,000 being returned. Be sure to decline any tax withholding on the return of contribution.
