Q1 When you requested the withdrawal of excess contribution plus earnings did you request $6,000 but only got $3,591? Is box 2a $0? If yes, then you can enter $6,000 as withdrawn on the penalty screen during the IRA contribution interview in your 2021 tax return.
But if you requested less and still have an excess contribution left in the Roth IRA then TurboTax will ask about the value at the end of the year (plus contributions made for 2021 in 2022) and will calculate the 6% penalty on the smaller of the value or of the excess contribution left in the account. Therefore, if your balance is lower than the excess then TurboTax uses the balance left in the account to calculate it. If you have an excess left in the Roth IRA then you will need to make a regular distribution (which might mean emptying the account if less than the excess is left) in 2023 and this will resolve the excess contribution on your 2023 tax return.
Q2. No, you will have to pay the 6% penalty for the 2020 excess on your 2020 and 2021 tax returns because it wasn't removed until 2022.
No, you are getting a return of your contribution and this isn't taxable and not subject to the 10% penalty. Please make sure you enter your net contributions prior to 2022 in the follow-up questions in the retirement section.
No, code J is correct in your case. You removed the 2020 excess as a regular distribution (without earnings) after the 2020 extended due date.
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