FYI, what I do in this case when the taxable amount is less than the gross amount, I enter two line on other income- gross amount, then negative basis or capital contributed. This nets to box 2 taxable distribution. So the IRS sees the whole amount entered.
When there is FIT withheld, I also attach the 1099R as a pdf, although I don't believe they see it anyway.
** I'm still a champion... of the world! Even without The Lounge.
