@dmvorion  All I stated in my previous reply was accurate. And yes, we did resolve it. In our case, we had 2021 and 2022 excess contributions. With the timely correction ( 2022 was in my case), you must remove the excess PLUS the earnings. The earnings will be taxable as income at whatever the tax rate is. The earnings have to be added to 1040 as taxable income. With the untimely correction (2021 in my case), you only need to remove the excess to avoid keep accruing the penalty, the earnings can stay in the account. If you do want to withdraw the earnings as well now or later, it will simply be treated as ordinary distributions subject to tax, if any in your case. We paid the 6% penalty on the 2021 contribution, for 2021 and for 2022. No penalty on the 2022 contribution, since the excess and the earnings were timely removed.  Nothing has to be amended. The penalty form 5329 for 2021 was filed as stand alone. And the penalty form for 2022 was filed with the 2022 returns and the earnings from the 2022 contribution were reported on 2022 return. 

Note, this is how this is treated on the federal level. Depending on the state, it can be treated differently on the state level. Some states do not conform to some federal laws. In my case, I had to research how CA would treat this, and if they conform. 

And @itonewbie is correct. I believe you are in the wrong forum, since this is for tax professionals. If you are not a tax professional, I would strongly suggest to have this handled by one, since this can be complicated.