Retirement tax questions

Q1. No, you cannot just add code P. You made a regular distribution not a withdrawal of excess contribution plus earnings.

If you did not withdraw the earnings with the excess contribution then you will have to pay the 6% penalty for 2022. If you did not pay the 6% penalty on your 2022 tax return then you will have to amend your 2022 tax return an enter the Roth IRA contribution. Then TurboTax will calculate the penalty on Form 5329. 

" For purposes of determining excess contributions, any contribution that is withdrawn on or before the due date (including extensions) for filing your tax return for the year is treated as an amount not contributed. This treatment only applies if any earnings on the contributions are also withdrawn. The earnings are considered earned and received in the year the excess contribution was made."(Pub 590-A)

Q2. No, you will enter the 2023 Form 1099-R on your 2023 return as shown. 

1. Login to your TurboTax Account 
2. Click on "Search" on the top and type “1099-R” 
3. Click on “Jump to 1099-R” and enter all your 1099-Rs
4. Click "Continue" on the "Review your 1099-R info" screen
5. Answer all the questions and make sure you enter the net contributions prior to 2023 on the "Enter Prior Year Roth IRA Contributions" screen
6. On the "Do you have any Excess Roth Contributions" answer "Yes"
7. On the "Enter Excess Contributions" screen enter the total excess contribution from 2022.

The excess contribution will be resolved in 2023 when you enter the Form 1099-R. 

Q3. You can leave the gains in the account since it is after the due date of the 2022 return.

Please see What happens if I made an excess Roth IRA contribution for additional information.

@Victor21