When you go through the Roth IRA contribution section of 2023 TurboTax, confirm that TurboTax shows the correct ~$40 of excess carried in from 2023. TurboTax will will then ask you how much to apply as a 2023 Roth IRA contribution where you'll indicate the entire amount of the excess. The result will be that TurboTax will include the this amount on line 35 of Form 5329 to be subtracted from the same amount on line 34, resulting in $0 on line 38.
