Retirement tax questions

Thanks for your response!

 

I was doing a bit more research since I posted the question.

I reviewed IRS IRC 402 (g) (2) (c).  https://www.law.cornell.edu/uscode/text/26/402

From the way I'm reading it, only the earnings ($33 in this case) should have been reported in 1099 Box 2a as taxable.

Thoughts??