Abstract Two-electron dynamics of an excited model atom interacting with moderately strong laser fields is analyzed in the time domain. We solve the time-dependent Schrödinger equation (TDSE) for two electrons confined to the same one-dimensional configuration space, accounting also for the electron-electron interaction. The computational method allows direct access to the time-dependent population of the relevant atomic states during and right after the interaction with a near-infrared (NIR) laser pulse. We compare the ionization dynamics of singly excited states and doubly excited states. We find that doubly-excited initial states exhibit enhanced double ionization yield, with non-trivial dynamics including contributions from direct and sequential processes, while the electrons leave the atom either back-to-back or in the same direction.