Both instructions are correct, if you enter a 2022 Form 1099-R with code P, with the IRA/SEP/SIMPLE box not checked, then TurboTax will add the amount to your wages in 2021. But Form 1099-R has more details to fill in therefore it might be easier to use the instructions above.
If you do not receive the excess deferral by April 15th then you are taxed twice on the excess deferral. This happens once when you contribute it (you will have to add it to your wages with the steps above) and again when you receive it as a distribution (enter Form 1099-R). You can't include the excess amount in the cost of the contract even though you included it in your income.
A code P on a 2022 Form 1099-R means "Return of contribution taxable in 2021" that is why you need to select what year is on the form in the follow-up question.
@Raescott
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
