All of the reporting of the Forms 1099-R is correct. If TurboTax is reporting an early-distribution penalty on the distribution from the Roth IRA, claim an exception to the penalty on $2,129.61 for a corrective distribution made on or after December 29, 2022.
If you repay the $2,130.22 to the plan, you would make a claim of right on this amount on the tax return for the year in which the repayment is made. Being less than $3,000, the claim of right would have to be taken as an Other Itemized Deduction on Schedule A of that tax return. However, if your itemized deductions are less than your standard deduction, there won't be any benefit to claiming this deduction.
