Yes, this is correct since you removed the 2021 excess in 2022 you do not have to pay the 6% penalty on your 2022 tax return (you can see this on Form 5329 part IV). And since you only got the contribution amount returned it won’t be taxable. Please make sure you entered your net contributions in the follow-up question:
- Login to your TurboTax Account
- Click on "Search" on the top and type “1099-R”
- Click on “Jump to 1099-R” and enter all your 1099-Rs
- Click "Continue" on the "Review your 1099-R info" screen
- Answer all the questions and make sure you enter the net contributions prior to 2022 (include the 2021 excess contribution that wasn’t removed until 2022) on the "Enter Prior Year Roth IRA Contributions" screen
- Answer the remaining question.
@DPNJ
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