You will have to pay the 6% penalty for 2020 and 2021 since you did not withdraw the excess contribution plus earnings by the due date of the 2020 tax return.
You will have to amend your 2020 tax return. Please see How do I amend my 2020 return?.
You should remove the excess contributions (without the earnings) by December 31, 2022, to avoid paying the 6% penalty in 2022 and future years.
To create Form 5329 for the 6% excess contribution penalty in TurboTax please follow these steps:
- Login to your TurboTax Account
- Click on "Search" on the top right and type “IRA contributions”
- Click on “Jump to IRA contributions"
- Select “Roth IRA”
- On the "Do you have any Excess Roth Contributions" answer "Yes"
- On the "Enter Excess Contributions" enter the total excess contribution from 2020
Please see What happens if I made an excess Roth contribution for additional information.
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