"Any suggestions on how to enter so that it properly reports the AE on 5329 and as taxable income? "
enter the amount you determined to be taxable ( AE ) in that box 2a and clear the box "taxable not determined".
the same amount should end up on 5329 Line 1 if you are under age 59 1/2.
BUT, for Roth IRA distributions, see instructions.
