Answers to all your questions! This money is coming from a pre-tax retirement plan. You put money in and it was not taxed going in.
Code 8 means a return of excess contribution plus gain. You would have put too much in, earlier. Because you got a tax deduction for which you did not qualify,you are now adding it to your income.
Code 2- early distribution with an exception so there is no penalty. Straight tax on the income only. You are taking out money that has not been taxed previously, so it is time to pay tax.
The zeroes are odd. Logic says to me that box 1 and 2 would match in your situation; but, they don't. The only way to get them through, is to put into box 1 the same number that is in box 2a.
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