Thanks for your response. This is very useful. I have an additional question, if you can please instruct, I'd really appreciate it.
I played this a bit in turbotax and discovered that if code "P" is used, then there is no tax consequence (no tax for this 1099-R for 2021). However, when code "E" is used, then it appears that the amount on this 1099-R is taxable for 2021.
When the excessive contritution was returned to me in Feb last year, I have in fact followed your instruction #2 from this thread and reported this income in 2020's return as misc income. My question is what should I do now to avoid being double-taxed.
I have found you mentioned code E in another thread but without mentioning any solution to avoid double-tax. And my over contribution was caused by two employers each of which contributed within limit.
Thanks a ton!
