Retirement tax questions

At this point, it is far too late to make a "return of excess contributions."  That had to be done before April 15, 2019.  (I believe there is a provision to remove the excess in the following year, but that would only extend the deadline to April 15, 2020.  Also, I don't fully understand that provision and you would need help from another expert.)

 

That excess must remain in your account and will accrue a 6% penalty every year until your account is spent down.  (The penalty is 6% of the excess contribution, or 6% of the account balance on December 31, whichever is smaller.)  If your penalty is only $16, then I guess your excess contribution is just $266?  That's not too bad.  $16 per year is just the equivalent of a slightly larger than normal account maintenance fee.  But, you are stuck with it until the end.