I accidentally contributed too much to my 2020 IRA this year.
I contributed $7000 to a traditional IRA and $1000 to a Roth IRA. My intent was to contribute $6000 to my traditional IRA but I lost track and contributed too much. The Roth IRA was used in previous years but due to a jump in income in 2019, I wanted to reduce my tax liability as much as possible.
I've since purchased and sold several stocks and am now fully invested in stocks.
What do I need to do to rectify this situation?
I know that I must sell off at least $1000 worth of securities in each account, but how do I know if I owe interest, penalties, etc. and what do I do to withdraw? I assume an excess contribution form?
Any help is appreciated.
Thank you.
