@sahilio1987 -
1) Correct. (It is not actually misc. or other income, that is just the TurboTax interview section - on the tax return it is added the the 1040 line 1 - wages.)
2) You will get a 2019 1099-R with a code "P" in box 7 for the excess that would need to be entered on an amended 2018 tax return if not reported now. You will receive a separate 1009-R withe a code 8 in box 7 that report only the earnings (or loss) that are reported on the 2019 tax return - the year returned.
3) Do NOT change the W-2. It is reporting what actually happened in 2018. You can't change the past - that is what the 1099-R's are for - to properly report that it was returned.
4) The error on the W-2 is a TurboTax bug that should be fixed by tomorrow night (4/5/19).
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
