Only the income earned on an excess deferral should be reported on the 2024 Form 1099-R with code 8. A distribution that was for a 2023 excess deferral returned in 2024 should be reported on the 2024 Form 1099-R with code P. Please see Pub 525 for details. You will have to contact the custodian about correcting the Form 1099-R.
"You must include the excess deferral in your income for the year of the deferral." (Pub 525)
"Any income on the excess deferral taken out is taxable in the tax year in which you take it out." (Pub 525)
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