No, that's not quite right.
Most important is:
- Did you file your tax return for 2021 yet? (Even if you now realize it needs to be corrected.)
- If you did not file, did you request the automatic deadline extension before midnight on April 18?
- Did you complete the withdrawal of excess yet?
- Is this your entire Roth IRA balance or do you have other funds in the account?
I will assume one set of facts, if the facts are different, the answer might be different so be sure to let us know.
First, you have a $200 excess for 2020 that can't be removed as an excess. You need to report that excess on your 2020 return (amended if necessary) and pay the 6% tax on form 5329. If you did not report the excess on your original 2020 tax return and this is the only change, you don't need to file an entire amended tax return. You can download and print form 5329 for 2020, fill it out, check the box for "amended return" and mail it to the IRS with a check.
https://www.irs.gov/pub/irs-prior/f5329--2020.pdf
For 2021, I will assume you did not file yet, and you completed the removal of $4680 before April 18.
In that case you report that you made an excess contribution of $1140. (You would not report a contribution of $6000 and withdrawal of $4680, because the removal of excess is not technically a withdrawal and it cancels the contribution as if you never made it. So you have a contribution of $1140. This will add to the $200 prior excess for a total excess contribution of $1340 and another 6% penalty.
Then going forward, you can use up the excess by contribution less than your allowable maximum to an IRA or Roth IRA. In other words, if you are eligible to make IRA or Roth IRA contributions in 2022 (based on your income and other situations) then you should only contribute a total of $6000-$1340 = $4660 (into any combination of regular and Roth IRA). This will allow you to treat the prior excess as a legal 2022 contribution, and will remove the penalty going forward.
If you do continue to make $6000 maximum contributions, you can zero out the penalty by withdrawing $1340 from your Roth IRA in 2022, which may or may not be taxable depending on whether that $1340 represents contributions or earnings.
If you continue to make maximum $6000 contributions, AND you don't take a corrective withdrawal, only then will you pay the 6% penalty in perpetuity.
