Since the excess was corrected in 2024 by making an ordinary Roth IRA distribution, your 2024 Form 5329 will show that the excess has been eliminated and that there is no 6% penalty for 2024. There will only have been 6% penalties for 2022 and 2023.
Despite the contribution in 2022 being an excess contribution, this contribution added to your Roth IRA contribution basis. Because your contribution basis comes out first, your distribution of the excess is a nontaxable distribution of contribution basis that will be determined on Form 8606 Part III. Because the distribution is nontaxable, it is also not subject to an early-distribution penalty because early-distribution penalties only apply to taxable amounts.
Simply enter the Form 1099-R, indicate that you cashed it out, then click the Continue button on the page that lists the Forms 1099-R that you have entered and make sure that TurboTax shows your correct Roth IRA contribution basis from years prior to 2024.
