Amending 2023 for 1099-R code P which seems so simple.  The taxable amount (earnings) is reducing the IRA deduction and creating additional tax on F5329.  Should this be happening?  It seems a vicious cycle.  Does the client remove the excess then we go through this process again ?

Am I missing a check box to prevent this ?  

And for those that want to chime in - I should've included the earnings on the 2023 return since the funds were withdrawn before the due date...... yes in a perfect world.    I don't live in a perfect world.