Pub 590-A states: “For purposes of determining excess contributions, any contribution that is withdrawn on or before the due date (including extensions) for filing your tax return for the year is treated as an amount not contributed. This treatment only applies if any earnings on the contributions are also withdrawn. The earnings are considered earned and received in the year the excess contribution was made.”
Pub 590-A also states: "In general, if the excess contributions for a year aren’t withdrawn by the date your return for the year is due (including extensions), you are subject to a 6% tax. You must pay the 6% tax each year on excess amounts that remain in your traditional IRA at the end of your tax year. The tax can’t be more than 6% of the combined value of all your IRAs as of the end of your tax year." (this same rule applies to Roth IRA)
Therefore, you only have until the extended due date of the 2021 tax return to remove the 2021 excess (plus earnings) to avoid the 6% penalty. If you miss the deadline, then you will pay the 6% penalty for each year the excess stay in the account. Your 2021 excess stayed in the account in 2021 and 2022 and therefore you will need to pay the 6% penalty for each year.
@gjgogol
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