No, you do not need Form 5329. You removed the excess contribution so you would only need to pay the 10% early withdrawal penalty on the earnings portion, but there was no earnings portion. Since you removed the excess contributions, no 6% penalty is incurred. The 6% penalty applies to the lesser of your excess contributions ($0) or the year-end balance
The loss that you had will carry forward within the account until you start to take distributions. @Bob T1944
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