@fanfare , when you enter into TurboTax a Form 1099-R that includes code P in box 7, TurboTax asks what the year of the form is. Answering 2022 in 2021 TurboTax causes 2021 TurboTax to treat the box 2a amount as taxable and potentially subject to an early-distribution penalty. Only if one mistakenly indicates to 2021 TurboTax that it's a 2021 Form 1099-R would TurboTax ignore it.
Note that one should almost never have taxes withheld from such a distribution. Tax withholding on a 2022 Form 1099-R that includes code P in box 7 would have the box 2a amount taxable in 2021 but the tax withholding would apply to 2022.
