It seems that you will need to submit two substitute Forms 1099-R in place of the one provided by the payer. One will reporting the actual return of contribution and the other a regular distribution. $5035.28 being distributed as a return of a $6,000 contribution implies a loss of 16.0787% during the computation period. Applying that loss factor to a return of $4,500 of contribution results in a corrective distribution of $3,776.46 in box 1 of the code-JP 2022 Form 1099-R and the remainder reported on a 2022 Form 1099-R with $1,258.82 in box 1, a blank box 2a, box 2b Taxable amount not determined marked and code J in box 7.
