Yes, you can ignore the 2024 Form 1099-R with code BP for the distribution of the excess to the Roth 401(k).
Yes, you will have to report the 2024 Form 1099-R with code 8 for the earnings on your 2024 tax return.
It depends, on your situation and preference. If you prefer to be able to withdraw the contributions and earnings tax-free (Qualified distribution) when retired then the Roth is better. Please review the IRS Roth 401(k), Roth IRA, and Pre-tax 401(k) Retirement Accounts chart.
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