1. Yes, that's correct.
2. By law, the NI in this case is reportable on the 2018 tax return, not on the 2019 tax return. The 2019 Form 1099-R reporting this distribution will have codes J and P, where the code P indicates that the taxable amount shown in box 2a is to be reported on the tax return for the year prior to the year of the Form 1099-R.
