Yes, that is correct.
Pub 525 states: "If you contributed more to the plan than allowed, the excess contributions may be distributed to you. You must include the distribution in your income on Form 1040 or 1040-SR, line 1h.
If you receive a corrective distribution of excess contributions (and allocable income), it's included in your income in the year of the distribution. The allocable income is the amount of gain or loss through the end of the plan year for which the contribution was made that is allocable to the excess contributions. You should receive a Form 1099-R for the year the excess contributions are distributed to you. Add the distribution to your wages for that year."
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