Yes, and you should get two 2024 Form 1099-R for the withdrawal of excess contributions plus earnings since, generally, the financial institutions will use this rule:
• If you made the excess Roth IRA contribution in 2024 for 2023 and then withdrew in 2024 then you will have code 8 and J on your 2024 Form 1099-R, and it will have to be reported on your 2024 tax return.
• If you made the excess Roth IRA contribution in 2023 for 2023 and then withdrew in 2024 then you will have code P and J on your 2024 Form 1099-R, and it will have to be reported on your 2023 tax return.
You should check with your financial institution if they will follow this rule. Or you could wait until next year when you receive the 2024 Form 1099-R and then amend the 2023 return if necessary.
If you enter the nondeductible contributions then TurboTax will ask for the value of your traditional IRAs on December 31, 2023 (including 2023 contributions made in 2024). Since you converted the $7,500 in 2023, this would be $1,000 and TurboTax will calculate the 6% penalty on this. The 6% penalty is calculated on the lower of the excess contribution or the value of your traditional IRAs on December 31, 2023 (including 2023 contributions made in 2024). If you do not enter the nondeductible IRA contribution then TurboTax will not create Form 8606.
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