Retirement tax questions

No.  Box 2 is right.  You are taxed on the full amount that came out of the IRA, not just the amount you got.  As I said above you didn’t actually pay the tax.   You had withholding taken out like from your paychecks.   On your tax return you have to enter all your income to figure the total tax.   Then all your withholding is subtracted to give you a refund or tax due.