No, you're not being "double taxed". Code B indicates "Designated Roth account distribution". Code 2 indicates "Early distribution (except Roth), exception applies. In this case, "Roth" refers to a Roth IRA, not a designated Roth account. So the combination indicates that you took an early distribution from a designated Roth account, but an exception applies; therefore, your distribution in not subject to penalty. It's a Designated Roth Account distribution, so it is not taxable, exception or not, since it is funded with after-tax money.
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