Thanks @SantinoD for your in-depth analysis and explanation. Super helpful.
In regards to removing only the excess contribution after the tax deadline, as of this month (March 2023), I was able to remove the excess contributions (without earnings) from my retirement brokerage account. Since I removed the excess between October 17, 2022 and December 31, 2023, how do I let the IRS know that I have withdrawn these excess contributions on 2022's 1040 Tax Return? I understand the 6% contribution penalty will remain on the 2021 return, but I would like to make sure 2022's Return avoids any further penalties from the 2021 excess contribution mistake.
Any advice would be amazing.
