@Nikkinmarie
"I guess I will need to report the excess contribution of $200 and amend my 2020 return to pay 6% penalty for this excess because I did not withdraw $200 before 10/15/2021. "
Correct. You don't have to file a full amended return, you can just prepare a form 5329 for 2020 and check the "amended" box.
"Based on what you said, it seems that I have to instruct them to withdraw $200 for 2020 and $6000 for 2021 because if I only withdrew $4,680, the difference of $1,520 ($6,200-$4,680) will still be considered as excess contribution."
Not quite. The $200 is a separate problem. That can't be removed as excess. If you remove it to avoid a future penalty, that removal will count as occurring in 2022.
You need to instruct the custodian to return $6000 to you as a withdrawal of excess contribution from 2021, as long as you have sufficient funds in the Roth IRA. You must complete this withdrawal before 10/17/22. Then, you must file an amended tax return for 2021 that reports the $200 prior contribution from 2021 as a continuing excess, but you won't report any contribution or excess for 2021. You will pay another $12 penalty (6% of $200). You must file your amended return by mail, not online, and you must write "Filed pursuant to section 301.9100-2" on the top of page 1.
(Note that if you prefer, you could remove the excess from the traditional IRA, but then you would lose the tax deduction and pay more income tax on your amended return. But sometimes there might be reasons to leave the money in the Roth instead of leaving it in the traditional IRA.)
Then as for the remaining $200 excess in the account, you can deal with this in one of two ways.
1. Take a regular Roth IRA withdrawal of $200 some time in 2022, that will be reported as a 2022 withdrawal on your 2022 tax return. (It is too late to take a corrective withdrawal of this $200 in 2022 and count it retroactive to 2021.) Taking a regular withdrawal will remove it from being considered excess when you file your 2022 return.
2. Or, if you are eligible to make new contributions to a traditional or Roth IRA for 2022, contribute $200 less than your maximum allowed contribution. The $200 excess will be counted as part of your allowed limit for 2022 and will no longer count as excess.
