"Then as for the remaining $200 excess in the account, you can deal with this in one of two ways.
1. Take a regular Roth IRA withdrawal of $200 some time in 2022, that will be reported as a 2022 withdrawal on your 2022 tax return. (It is too late to take a corrective withdrawal of this $200 in 2022 and count it retroactive to 2021.) Taking a regular withdrawal will remove it from being considered excess when you file your 2022 return.
2. Or, if you are eligible to make new contributions to a traditional or Roth IRA for 2022, contribute $200 less than your maximum allowed contribution. The $200 excess will be counted as part of your allowed limit for 2022 and will no longer count as excess. "
Yes, I am quite confused of 2020 excess. I thought I can do regular withdrawal of my $200 and my spouse's $6000 now (2022) to remove excess on my 2022 tax return based on option 1. After reading your last post, you are advising option 2.
