Yes, there will be penalty on the excess contribution. To avoid the 6% tax on excess contributions, you must withdraw:
- the excess contributions from your IRA by the due date of your individual income tax return (including extensions); and
- any income earned on the excess contribution.
If you don't take the money out the penalty on the excess would be 6% each year until the excess is withdrawn. Therefore, if you are not going to withdraw the excess make sure your Roth contribution in 2023 is your contribution limit minus the excess contribution.
See IRS publication:
IRA Contribution Limits
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