Investors & landlords


You can work off your excess in 2023 by ensuring that your Roth and/or Traditional IRA contribution next year is less than the max allowable,
particularly by the amount of your excess. Then your penalty situation will be resolved, using Form 5329.
if you are eligible next year to contribute 6000, or (some amount) you can apply that amount to resolving your excess and you don't have to take anything out. see Form 5329.

You still pay the 6% penalty for 2022 ( or possibly less, see Form 5329 line 25.)

 

@a_v