If you use the adding the 2025 1099-R with code P method you will get a follow-up question where you can indicate that this is a 2025 Form 1099-R. Then TurboTax know code P means taxable in 2024. Therefore, you can ignore that it states "taxable in 2023". After entering the 2025 Form 1099-R with code P TurboTax will add it to line 1h on Form 1040.
No, since it wasn't taxed when you made the contribution the distribution has to be included in your taxable income and is taxed at your regular tax rate.
@danwhitmire1962
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
