IRA contribution applied to wrong year, new contribution denied

[jerbone]

My wife and I contributed $7000 each to traditional IRAs in 2021 for 2020 tax year. The bank made an error and attributed it to 2021 so when we recently tried to contribute another $7000 for 2021 it was denied as excessive funds. The bank submitted an emergency IRS correction but is doubtful that it will adjust in the system before the 4/18/22 deadline, which would allow us to contribute for 2021. 
Is it possible to make a 2022 $7000 contribution (each) and include it on our 2021 taxes, and have the bank/IRS adjust it for 2021? 
Or are we just stuck unable to make a contribution for tax year 2021? Thanks!

[DanaB27]

To clarify, your bank didn't allow you to make another contribution for 2021? Otherwise, if you are certain that they can fix the other issue, you could make the contribution for 2021. But please be aware if they can't fix the issue this would cause an excess contribution for 2021.

No, you cannot make a contribution for 2022 and then change it as a 2021 contribution.

Excess contributions are taxed at 6% per year for each year the excess amounts remain in the IRA. To avoid the 6% tax on excess contributions, you must withdraw:

• the excess contributions from your IRA by the due date of your individual income tax return (including extensions); and
• any income earned on the excess contribution.

[fanfare]

@jerbone 

This has to be corrected on your Form 5498 that you will get in May.

It is the bank that has to update its records to allow a 2021 contribution by tomorrow.

OR

open another IRA account somewhere else and deposit $7,000 tomorrow for 2021.

Hint: TD Ameritrade will take your contribution for 2021 tomorrow.

you can consolidate the accounts later if you want to.

(you're better off with TD Ameritrade than with a bank).

[fanfare]

@jerbone 

what did you decide to do ?