If you requested a return of contributions and earnings then the 1099-R you will received should have a code P on box 7, the returned amount in box 1 and earnings in box 2a with the IRA box checked.
Some trustee are mistakenly using a code 8 instead and tell you to report it on your 2021 return which is incorrect.
And I have seen several posts from customers of one (unnamed) financial institution that just treats it as a normal distribution with a code 1, 2, or 7 in box 7 which makes it all taxable.
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
