@linhuisk
For the Roth IRA, he needs to contact the custodian and request a “return of excess contributions. “The custodian must also return any earnings, if any. The return of excess contribution must be completed before April 15. Since the contribution will have been returned within the tax year (under the meaning of the rules) he would simply not report the IRA contribution, it’s as if he never made it. If there were earnings that were returned to him, they will be reported on a 1099R for 2022 and will be taxable at that time.
He could leave the money in the Roth IRA, in which case he would pay a 6% penalty this year. He could then count the 2021 excess as part of his 2022 contribution limit, with the result that it would not be excess any longer and would not be subject to an additional 6% tax. It may seem odd that if he leaves the money in the account he pays a 6% penalty, but if he withdraws the money under the excess contribution rules and then re-deposits it the next week he doesn’t pay 6% penalty, but that’s the way the rules work.
For the internship, what kind of paperwork did he get if any, and who paid the stipend? A company would normally be required to issue a 1099-NEC or a 1099-MISC, unless the internship was paid by the school instead of the company he interned at.
It sounds like he is an undergraduate? Or is he a graduate student, your original question was not clear. It would also be helpful to know whether he pays tuition, or receives fellowship or free tuition in any way.
