I actually found a thread on turbotax that dealt with my exact issue. I pay the penalty and income tax for 2019 because that is when the event occurred (and I already did this). Because my 1099R form has the year 2020 with code PJ in Box 7 I need to file an amended 2020 to report the withholding taken out of the return of excess. 2019 will remain as is.
