No, you don't need to report the excess Roth contribution in 2025 because it was withdrawn before the due date of the return (including extensions). Because you removed the excess contribution (plus earnings/loss) on January 2, 2026, the contribution is considered timely corrected, and the 6% penalty doesn't apply. Thus, you don't need a 1099-R to file your 2025 tax return with TurboTax.
You will receive a 1099-R in 2027 that'll be reported on your 2026 tax, and will reflect the corrective distribution. Any earnings or losses associated with the correction are reported in the year of distribution (2026 in your case). Because this was a return of an excess contribution, the IRS doesn't allow a deduction for the loss.
(Edited Feb. 2, 2026 1:52 PM PST)
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