Yes, you will have to withdraw the 2020 and 2021 excess contributions as a regular distribution (without earnings or losses).
No, it won't impact your 2022 tax return. You will enter the 2023 Form 1099-R with code J on your 2023 tax return but it won't be taxable since you withdrawing a contribution. Be sure to answer the follow-up questions and include the 2020 and 2021 excess in the net contributions:
- Click on "Search" on the top and type “1099-R”
- Click on “Jump to 1099-R” and enter all your 1099-Rs
- Click "Continue" on the "Review your 1099-R info" screen
- Answer all the questions and make sure you enter the net contributions prior to 2023 on the "Enter Prior Year Roth IRA Contributions" screen
- Answer the remaining question.
@DiverJudge
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