I am sorry to get back to you so late but I wanted to run your instructions through on a second "copy". I created the substitute 1099-R and it generated a Form 4852.
Now I have double the penalty on form 5329-T.
My original excess contribution came right off the Roth Contribution Limit Worksheet. All I did was compute the additional other income and added it back to Sch 1. Created a penalty and more excess Roth. Then doing the above recommendation doubled it.
