Thanks so much for your detailed explanation.
I filed a joint return and my spouse has excess contribution too.
He has excess contribution of $6000 for 2020 and $6000 for 2021 Roth IRA.
I instructed my custodian to withdraw $12000 ($6000 for tax year 2020 and tax year 2021). I am still waiting for the custodian’s response. After reading your reply, I know the withdrawal year is 2022, that’s why I still need to pay 6% for the excess contribution for tax year 2020 on 2021 return.
But another questions is as far as I know, his Roth has a loss and the account balance is around $11000.
For his case, the maximum withdrew in 2022 is $11000 due to investment loss. What should I do his excess contribution then since this is a negative account balance. I still owe the difference of $1000 ($12000-$11000) for the excess contribution.
Thanks so much for your help answering my questions.
