I assume that you were not eligible to apply this $333 as a contribution for any year after 2012.
Yes, your 2016 tax return must include Form 5329 to report this excess contribution that remained in your Roth IRAs at the end of 2016.
Yes, your 2017 tax return will include Form 5329 to apply your distribution on line 20 to be subtracted from the excess shown on line 18.
Yes, you are correct about not needing to withdraw earnings.
Yes, assuming that this Roth IRA distribution is not a qualified distribution, it will appear on Form 8606 Part III. It will not be taxable since it will be a distribution of contribution basis.
