I over contributed ~$1,200 to my 401K in 2020. I worked with HR to have that returned to me from 401K administrator and received an updated W2 for 2020 with additional $1,200 in wages that I used to file 2020 taxes. I then received a distribution from 401K of ~$1,800 ($1,200 + gains). I have now received a 2021 1099R for the full $1,800. Do I only report the ~$600 in gains even though my 1099R says $1,800? Will I have to pay any type of early withdraw penalty as well?
