Hi,
I need some help with an over contribution to my IRA Roth. My income increased in 2020 and didn't realize that I wasn't eligible to contribute anything to my IRA Roth.
I'm going to withdraw the $6,000 from Merrill Edge plus the Earnings. I need some assistance in section 4 of the PDF below. "Withholding Election Federal and State", my option are;
a) Do not withhold federal income tax from my distribution.
b) Withhold federal income tax from my distribution (check one): 10%
My understanding is that I would choose option a), and only pay taxes on the earnings correct?
Secondly, once I submit the one time distribution form would I need to fill out a form 5329 for 2020?
https://olui2.fs.ml.com/publish/content/application/pdf/GWMOL/IRAOneTimeDistributionForm.pdf
Overall, I just need some clarity on the steps I should be taken, and what forms I need to fill out, along the taxes I should expect.
Thank you for the time and help.
