Did you by any chance have a conversion on your 2019 return? That will not be included in your MAGI for Roth IRA purposes. In my experience TurboTax gives you always the penalty warning screen if your contribution results in an excess contribution. Therefore, you might not had an excess in 2019.
It is your choice what you do, but if you recharacterize your 2020 contribution then you will not loose your contribution.
If you tell Schwab to move the $250 plus earnings to the next year then it will show as a distribution and a new contribution, but you might have to double check how they can handle it.
If you just leave it in without involving Schwab, then you would pay the 6% penalty for 2020 and could, via your 2020 tax return, apply the excess to your 2021 contribution.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
