If you overcontributed to a Roth IRA in 2020 you have to withdraw the overcontribution by May 17, plus earnings. Or you can recharacterize the contribution as a nondeductible Traditional IRA contribution and do a backdoor Roth.
If you were ineligible to make any contributions for 2020 then you would have to withdraw whole thing. Otherwise you just have to withdraw the excess.
2021 is a different year and it's not over. If you think you will be over the limit by year end, then you can withdrawal 2021 as well. Or make a nondeductible Traditional IRA contribution. But that's a separate year.
Your withdrawals will not wipe out gains from previous years. You only have to withdraw any earnings tied to your overcontributions.
Withdrawals are reported by calendar year so you will receive a 2021 Form 1099-R next year for your withdrawal because it happened it 2021. Roth contributions are after-tax so you would only pay on the earnings.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
