Tell the bank or broker that the contributions were not allowed (excess) and you need to remove them. (This is not a regular withdrawal and may require a special form.) They will calculate the excess and return it to you. You don't need to do it yourself (and the formula is complex, the IRS basically requires the broker to do it.) The interest is taxable on your 2025 return even though it will be paid in 2026. Report it as simple bank interest without a 1099, or as miscellaneous other income (either is correct). The return of the $5000 is not reported as a withdrawal, it is reported differently. When Turbotax recognizes that the contributions were excess, the program will ask if you plan to remove them before the tax deadline, and when you say yes, the program will fill out the correct forms. You will not get a revised 1099-R for the 2025 tax season.
In 2026, enter the 1099-R you will get, it should be coded in such a way that Turbotax will recognize it as non-taxable on your 2026 return.
You could file without removing the excess, you will pay income tax plus a penalty on the excess amount. But it won't change how you amend the return later. The 2026 1099-R showing the withdrawal would never be reported on your 2025 return. Your amended 2025 return would still use the procedure I described above.
