How is it an excessive contribution for my Roth IRA if I only pay $100/month for a total of $1,200/year?

[whetstonescott]

The FMV is $7382. How do I avoid paying a penalty.

[RobertB4444]

Your Modified Adjusted Gross Income for 2024 has to be below $146,000 if you're single and below $230,000 if you're married in order to be allowed to contribute to a Roth IRA.  If your income is too high then you can't make direct contributions.

You will need to withdraw the contributions before the due date of the tax return.  So you have until April 15th to call your broker and have them return the $1200 to you along with any money that the $1200 has earned.  You will have to pay tax on the earnings.

@whetstonescott