Actually there was a change in the rules regarding corrective distributions that started with distributions made on December 29, 2022 or later. The summary is that the 10% additional tax will not apply on the earnings that were taken as part of a corrective distribution. The age of the participant taking the distribution is not taken into account if it is a corrective distribution.
Here is a quote from Pub 590-B ( 2022 since unfortunately the 2023 isn't out yet) under What's New:
"Certain corrective distributions not subject to 10% early distribution tax. Beginning with distributions made on December 29, 2022, and after, the 10% additional tax on early distributions will not apply to a corrective IRA distribution, which consists of an excessive contribution (a contribution greater than the IRA contribution limit) and any earnings (the portion of the distribution subject to the 10% additional tax) allocable to the excessive contribution, as long as the corrective distribution is made on or before the due date (including extensions) of the income tax return."
Also, the Instructions for Form 5329 line 2 (see page 4) show exceptions to the 10% early distribution penalty. In this case exception number 21 may be used.
@manisman1995
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