It can be taxable. You are holding a 1099-R showing a taxable amount. The fact that it could be used for an IRA leads me to believe it would be taxable income. If it was pre-tax dollars that you rolled into an IRA within 60 days, answer the program questions to remove the taxable income.
I recommend you call the company and find out why they sent you the 1099-R. There records could be wrong or you may have forgotten some detail. You need peace that the form is correct or they need to issue a corrected form. The rules are in 2022 Instructions for Forms 1099-R and 5498 - Internal Revenue Service which states on page 2:
Life insurance, annuity, and endowment contracts. Report payments of matured or redeemed annuity, endowment, and life insurance contracts. However, you do not need to file Form 1099-R to report the surrender of a life insurance contract if it is reasonable to believe that none of the payment is includible in the income of the recipient.
Failure to report a 1099-R with taxable income will get you a letter and a process you don't want. You definitely need to get this handled now.
@mokragleski
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