Retirement tax questions

Since my 2024 W-2 has it listed, I would prefer to create the 1099-R.  However, when entering data into Box 7 code P seems incorrect as it states - "P-Return of contribution taxable in 2023"  shouldn't it be 2024?

 

Also - since I'm over 59 1/2 can I consider it an distribution where I'm not taxed so much?  If so, I can I do that?