after the due date, including extension, the earnings are not to be removed.
If you filed for a request of removal of 2021 excess plus earnings in 2023, that was incorrect.
It was also incorrect for the custodian to do that for you and should have contacted you for a corrected form.
"Will we be taxed on the earnings and if so when?"
IRS says:
How to treat withdrawn interest or other income. You must include in your gross income the interest or other income that was earned on the excess contribution. Report it on your return for the year in which the excess contribution was made."
That would be your 2021 tax return.
--
"I believe my custodian withdrew ... contribution and earnings "
the earnings are easily obtainable by subtracting the excess that you asked to be removed, from the amount the custodian gave you.
for each year you left the excess in through year-end, there is a 6% penalty on the excess, not the earnings.
@gjgogol
