In January 2020, my wife and I each contributed an amount ($7000 each) to our Roth IRA accounts for tax year 2020. In early 2021, I realized we each had an excess contribution (excess = $4340 each) due to our AGI limiting our Roth contribution amount to $2660 each. So we withdrew the excess amount plus earnings in early 2021 ($4659 for me, $4936 for my wife). What I did not realize at the time was this is to be taxed in the year of the contribution (2020), not the year of the withdrawal (2021). In early 2022, I was preparing an amended 2020 tax return with TurboTax to resolve the problem. However, because we had taxable earnings of $915, our 2020 AGI increased by $915, which in turn lowered our contribution limit for 2020 for each of us from $2660 to $2220 ($440 dollars). Therefore, we each now have an excess contribution for year 2020 of $440 because the Roth contribution limit changed. We each had to pay the 6% penalty for the $440. So the issue was improved, but not resolved. I am not sure how to resolve this issue. I suppose one way is to withdraw $440, plus earnings on the $440, plus some additional amount which will put us below the new limit (moving target), and file a second amended return for 2020 next year. Any advice on the best way to resolve this?