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The money is taxable on your 2024 return because it was a result of your participation in the plan in 2024.
Basically, the university's share (match, or whatever) paid to you was too large. The money is considered part of your compensation for work performed in 2024, and is added to your taxable income for the year. Go to the retirement income section and create a substitute 1099-R that puts the returned (taxable) amount in box 1 and box 2a, and use code P in box 7. The returned amount is taxable but is not subject to an early withdrawal penalty.
Then next year, the 1099-R should have code 8 in box 7, which indicates returned contributions that were taxable in the previous year. You will enter this in Turbotax, but it will not be included in your taxable income again.
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