You can file a substitute Form 1099-R to change the code from P to 7 and explain to the IRS that the custodian failed to take out the earnings, issued to wrong Form 1099-R and refuses to make any corrections.
Entering the Form 1099-R as instructed above with 2a blank will show a return of excess contribution without the earnings. When you enter this and answer the questions in the IRA contribution interview then this distribution won't be taxable as described in Return of Excess Traditional IRA Contributions. You will see the distribution on line 4a but it won't be taxable on line 4b of Form 1040.
Yes, you can choose to apply the 2024 excess as a 2025 contribution on your 2025 return. But you will have to pay the 6% penalty on the 2024 excess on your 2024 return if you choose to do this. Therefore, it might be better to request the return of excess contribution plus earnings by October 15th, 2025.
Yes, you will have to amend the 2023 return to pay the 6% penalty on the excess contribution.
The 2023 due date has passed so the IRS might charge interest and penalties.
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