Okay, contributed $7,000 for 2024, but only eligible for $1,000. So, excess pulled out before the tax year filing deadline = moot. Not reportable, no 8606.

Again, the 1099-R codes are for the money Out. You fill in the worksheet for what actually happened, such as Return of Excess contribution and if there are taxable earnings that were removed. Or not removed, left to ride over the year end(s).

"there were no earnings on his Roth IRA contributions for 2024"

I'm surprised. That year 2024, S&P 500 had over 24% gain, DJIA was 15%, Russell 2000 was over 11%, and even Treasuries were 5% consistently. The taxpayer's Roth IRA account didn't grow at all? Because the IRS has the computation for Net Income Attributable to that contribution amount, based on the account's performance.

If this wasn't already entered in the 2024 tax return, here's the support for how it should have been done. The "P" indicates for the prior year, for reporting 2024 in 2025 or not reporting at all, as it is just informational and was handled properly for 2024 already. This assumes there is nothing to report in 2025, since you state there are no earnings to deal with.

I would double-check that with year end FMV and the IRS worksheet, of course. If he had contributed after Dec 31, 2024 and then realized that was an error, it would make sense that there are no earnings to remove and report as taxable.

https://accountants.intuit.com/support/en-us/help-article/retirement-benefits/common-questions-form-...