Client contributed to a Roth in 2020 and 2021, but AGI was too high.  They took out contributions plus earnings in 2021.  They have Roth basis of prior years contributions that were legitimate.  Lacerte is running it through 8606 and not taxing the earnings because the basis is higher than the distributions.  I'm expecting earnings to be taxed and 10% penalty because they are earnings on illegitimate contributions.  Am I wrong or how do I do the entry to get the expected result?