1) Yes, you will add the excess deferral with the steps mentioned above.
2) If you receive the distribution after April 15th, 2023 then it will be a regular early distribution and you will have to enter the received Form 1099-R on your 2023 tax return. As Tax Expert DianeW777 mentioned this distribution will be subject to the 10 % early withdrawal penalty.
If you a certain that they cannot remove the excess before April 15th, 2023, you might want to consider leaving the excess in the account until you are 59 1/2 to avoid paying the 10% early withdrawal penalty.
@ka2626_b
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