Now I think I may understand the different ways you and I have been looking at this. You have been looking at it from inside the Roth, and I have been looking at it from outside.
You said: “Any earnings on the amount you should have been paid would also be Roth earnings.”
Is that because the $1,476.99 which should have been paid to me earlier was not, and thus did earn an additional amount inside the Roth?
But TIAA’s letter initially reporting the under-calculation referred to the $124.59 as “ESTIMATED earnings”.
That is what led me to focus on the earnings (taxable unless tax-exempt investment) on the $1,476.99 I could have received outside of the Roth had I received it in a timely way.
The question is how the I.R.S. would view it.
I would be happy to “sacrifice” the $124.59 (i.e. pay tax on it) if that would simplify things. I would like the I.R.S. to focus on TIAA’s coding of a Roth annuity distribution. But I can see how maybe it’s not possible to separate the two things.