The deadline to obtain a return of the excess 2023 contribution was October 15, 2024, provided that you files your 2023 tax return or requested a filing extension by April 15, 2023. As fanfare said, after that date you are subject to an excess contribution penalty on the 2023 excess for 2023 and 2024.
The excess 2023 contribution can now only be corrected by either applying it as a contribution made for 2025, if eligible, or by an ordinary distribution equal to the amount of the excess 2023 contribution; no investment gains on this are to be distributed.
If the 2023 excess is distributed in 2025, it will be reported on line 12 of your 2025 Form 5329 to be subtracted from the amount on line 9, reducing the excess on line 14 to zero. When entering the 2025 Form 1099-R into 2025 TurboTax, you'll need to enter a zero in box 2a of TurboTax's 1099-R form to indicate to TurboTax that this is a distribution of the excess after the due date of the 2023 tax return. This will cause 2025 TurboTax to treat the distribution as nontaxable and to prompt you for the required explanation statement.
