@dmertz ,
Thanks for your reply. You are right that this was an excess Roth contribution. Your instructions are very clear and appreciated.
The one last question I have is that even though this Roth IRA dropped in value, I have a Roth IRA at a separate bank that has previous year converted money. About $10k.
So my plan is to amend my 2021 return to remove the form 8606. Then file 2021 form 5329 and pay the penalty.
I would like to take the distribution option of the excess contribution. Can I withdraw just the balance of that one account where these entire contribution was put and that lost value? or do I need to remove money also from my separate Roth Account?
If I withdraw the excess contribution right now, can I avoid paying the 6% fee for this year?
