No, you will not get penalized for removing a little more than the excess contributions to avoid the changes in MAGI. Just make sure you request the withdrawal of excess contribution plus earnings.
"Income on corrective distributions of excess contributions. The income on the corrective distribution of excess contributions made on or after, December 29, 2022, is no longer subject to the 10% additional tax on early distributions." (Pub 590-B)
@Vicky75
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
