The due date of your 2024 tax return, including extensions, would be the deadline to obtain a return of a contribution made for 2024. To have obtained such a return of of the 2021 excess contribution it would have to have been obtained by the due date, including extensions, of your 2021 tax return. Since we are well past that deadline with respect to an excess contribution made fore 2021, the corrective distribution must be made by year-end. Only if it is completed by the end of 2024 can it appear on line 20 of your 2024 Form 5329 to reduce the excess carried in from 2023. Without that, the penalty is not eliminated for 2024.
