I missed the fact that the rollover to the Roth IRA occurred in 2022 and had assumed that the rollover to the Roth IRA occurred in 2023. Since it occurred in 2022, if you were not eligible to treat the $3,800 as a regular Roth IRA contribution for 2022, you owe a 6% penalty on the $3,800 plus attributable earnings accrued in the Roth 401(k) for 2022. If you were similarly not eligible to treat the excess as a regular contribution for 2023, you also owe another 6% penalty with your 2023 tax return. Assuming that you also will not be able to treat the excess as a regular contribution for 2024, correcting the excess now requires a regular distribution equal to the amount of the excess. There will be no early-distribution penalty because the distribution will be a nontaxable distribution of contribution basis.
