If when TurboTax tells you that you have an excess contribution you tell TurboTax that you've made the full corrective distribution, TurboTax will remove the entry from Form 5329 and you'll be left with only the amount that TurboTax reports on Schedule 1 line 8f. With the corrective distribution having been made in 2024 any investment gain included with the returned contribution will be taxable on your 2024 tax return when you receive the code-2 2024 Form 1099-SA.
