You may withdraw some or all of the excess contributions and avoid paying the 6% excise tax on the amount withdrawn if you meet the following conditions.
You withdraw the excess contributions by the due date, including extensions, of your tax return for the year the contributions were made.
You withdraw any income earned on the withdrawn contributions and include the earnings in “Other income” on your tax return for the year you withdraw the contributions and earnings.
your other option is to leave the excess in, pay the 6% penalty, and then under-contribute in 2024
if you contributed though payroll, the excess will be taxable income, regardless of whether withdrawn or not because the wages on box 1 were reduced by your contributions including the excess or your employer made a tax-free matching contribution that is now taxable up to the excess.
