1. Amend 2023 to report the excess and pay the 6% penalty on the excess contribution.
2. File 2024 to report the Roth contribution and the rechacterization. If the recharacterization is non-deductible (not deductible to the traditional IRA because of your filing status, you will now have a non-deductible basis in your IRA that is reported and tracked on form 8606, you need to keep that for the future.
Your 2024 tax return will also assess another 6% penalty on the 2023 excess that remains in the Roth IRA.
3. You can withdraw $5410 from the Roth in 2025. This would be a regular (early) withdrawal, not a withdrawal of excess. The taxability depends on your overall Roth IRA contributions and earnings and any past withdrawals. You can always withdraw your Roth contributions tax-free. Roth withdrawals are always contributions first, conversions second and earnings last. As long as you have at least $5410 of prior contributions that have not previously been withdrawn, the current withdrawal would be tax-free. You can't remove just the earnings from the excess, since you missed the deadline for that procedure.
