I assume the tax withheld was reported under your social security number. If so, it will be on deposit with your taxes paid in during 2021. So, once you file your tax return it will be applied to your tax and should be refunded to you even if you don't report it. That being said, it is conceivable that the IRS may be confused by the withholding being reported on a form 1099-R and it is possible that they would withhold the tax pending reporting on a form 1099-R. So, it would seem prudent to report the transaction the way you have, accept I would recommend you simply report the withholding, not the distribution, since that didn't actually occur. So, enter the withholding in box 4 and use code T in box 7, and leave the other boxes blank.
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