This is a follow up to the response stated “Yes, the earnings will increase your MAGI and therefore can change how much is excess contribution. Usually it is best to remove a little extra when you are in the phase out range to avoid that issue.
You still have time to remove the new excess contribution for 2023, by requesting another withdrawal of excess contribution plus earnings by the due date. Just keep in mind any new earnings will raise your MAGI again and you might want to withdraw a little extra to avoid any further issues.”
Will you get penalized for removing a little more than the excess contributions to avoid the changes in MAGI due to the earning so you don’t end up with another smaller balance of excess contributions?
