1. Yes, you must amend your 2014 tax return to remove the $5,500 traditional IRA contribution and to add the $5,500 Roth IRA contribution so as to generate From 5329 reporting the excess Roth IRA contribution that is subject to penalty for 2014. You'll pay the $330 penalty with your amendment. (The IRS may bill for interest later, perhaps around $20.)
2. No, you do not need to calculate earnings on the excess 2014 contribution. They are permitted to remain in the Roth IRA.
