2024 contribution and related earnings properly removed in 2025 before 2024 Tax Day, including extensions (Oct 15 2025) are not penalized and not reported on 5329.
Related earnings (only) are included in 1040 Line 4b.
to do this you use the 2025 1099-R code "PJ" trick discussed above.
Properly removed means, you requested a 2024 extension, OR, you already timely filed 1040 by Tax Day April 15 2025. If the latter, and no report of earnings, you have to amend.
@jliangsh
