Traditional IRA with basis … Need help with prior years’ excess contributions where a larger normal IRA distribution was received, followed two years later by corrective distributions, all after the extended filing due dates of the contribution years

This is the next phase of my excessive IRA contributions saga.  I have prepared and filed amended 2021 and 2022 returns with Forms 5329, reporting excessive contributions in each year to my traditional IRA with basis.  https://ttlc.intuit.com/community/retirement/discussion/how-do-i-handle-traditional-ira-basis-form-8...

I am now dealing with 2023.  I am in the process of amending our 2023 return to correct an unrelated error and, I thought, to report and pay the 6% penalty on excessive traditional IRA contributions that carried over to 2023 from the two prior taxable years (2021 and 2022).  In 2025 (earlier this year), I requested and received corrective distributions of the excess contributions.  

When I requested the distributions, I had not considered that, for 2023, I took a normal IRA distribution that was greater than, about double, the combined excessive contribution carryforward.  The 1099-R, as usual, has Box 1 gross dist & Box 2a taxable amounts the same (the total distribution amount in both boxes), the Taxable Amt Not Determined box is checked, Code 7 on line 7, and IRA/SEP/SIMPLE checked.       

Now, I am not sure how to proceed with TT in amending my 2023 return.  I would appreciate insight and help.  Here’s where I am:

OPTION A (?).  (Note:  I prefer this option, to bring this mess to conclusion earlier rather than later, and hope that it is an acceptable and doable approach.) 

On the 2023 amended return, can I consider and report the 2023 normal distribution as clearing the excessive contributions, such that I will not need a 2023 Form 5329 & penalty payment?  

I think that OPTION A MAY require that I make certain adjustments in TT to my “as received” 1099-R info – particularly the line 2a taxable amount, manual addition of various codes, possibly an adjustment of my IRA basis, I even wondered about entering two 1099-R's for the distribution, one with the return of contribution and the remainder as normal – but I am not confident how to do that correctly in TT.  

I do need to understand how my distribution is being taxed, pro-ration and all, so I can feel confident that I am reporting it correctly on my amended return.

Maybe OPTION A is my only option, i.e., that this clearing of the excessive contributions happens and must happen when a normal distribution is taken on my facts, I don’t know.  If this is the option taken, then I also need insight into what to do when my 1099-Rs for the corrective distributions I requested and received in 2025 are reported, as those distributions would then be properly treated, and I guess I would need to manually re-code them, as normal distributions since all excessive contributions would have been cleared on my amended 2023 return under this scenario.

OPTION B (?).  Report the normal distribution exactly per the 1099-R as received, consider the prior year excessive contributions as remaining in the IRA for 2023, making sure that I answer TT’s questions correctly to achieve such treatment.  This, if an option, I imagine would result in another penalty for 2023 with another Form 5329, ditto for 2024, as the corrective distributions weren’t made until 2025.  

If OPTION B is the approach, I think I know how to handle the 2025 1099-R’s.  The corrective distributions I received in 2025 were just contribution amounts, with no earnings calculated thereon.  I expect they’ll be entered as received.  

Any insights and instructions would be greatly appreciated!