Thanks @macuser_22 for the detailed explanation. Please bear with me on some additional points of clarification.
1. Even though I removed the 2018 contribution of $6500.00 in June 2020, based on my AGI I was still eligible to contribute $440 (so $6060 excess). On 2018 & 2019 Form 5329 line 18 the, I should only put the excess contribution correct? Even though I removed the entire $6500 I should not be taxed/penalized on the additional $440 removed, since I'm eligible to remove contributions anytime (I am under 59 1/2 and have had the account for > 5 years).
2. So only file a 1099R for the 2019 excess contribution and don't mention anything about the 2018 excess until filing 2020 return - correct? (makes sense since TT doesn't allow for multiple line entries for a single 1099R).
3. Before posting while trying different methods to report both 2018 and 2019 withdrawals, within Deductions & Credits I went through the interview for Traditional and IRA Contributions and while entering contributions for 2019, it asked if I had excess contributions for prior years for which I entered $6060 (2018). TT generated a Form 5329 for 2019 listing both - the 2019 income ($559) on line 1 as well as the 2018 excess ($6060) on line 18 and calculated the taxes due. Do you think I should still file a 2018 5329 separately or is it OK to do the combined one generated by TT.
