Roth IRA Excess Contribution

Taxpayer contributes $6,000 to Roth IRA, income ends up over the threshold for 2019. With earnings, it's now worth $8,000. Income in 2020 is expected to be below the limits.

Instead of recharacterizing the income, proposal is to leave it in and pay 6% on the excess contribution, then not contribute next year. Here is my question:

1.) The excess contribution applies to the $6,000 only, correct?
2.) Do the $2,000 in earnings factor in at all?

6% on the excess contribution of $6,000. Carry forward the excess contribution and it will be applied to the next's year contribution which you said he will be eligible for. No worries about the earnings.

Couldn’t the excess be withdrawn if before the due date of the return? If after 12/31/2019 couldn’t the funds be applied towards 2020 contributions?

Couldn’t the excess be withdrawn if before the due date of the return? If after 12/31/2019 couldn’t the funds be applied towards 2020 contributions?

Yes, but then he also has to pay tax on earnings which were significant in 2019, plus a 10% distribution penalty on those earnings. That's why I was trying to see if the earnings came into play on just carrying the contribution forward to 2020 and paying the 6% on the excess contribution.