If the money is still in the IRA it does not have to be reported.
If you got the money report it as Misc Income
Click on “Take me to my return” button.
Click on Federal tab (left-hand side of screen).
Click in Wages and Income (near top of screen)
Scroll down to Less Common Income.
Click on Start next to Miscellaneous Income.
Click on Other reportable income.
Follow the questions and say IRA and report the $1.96 as income.