I could not find an answer to this question on the message boards, but please forgive me if it's already been asked. An employer overfunded matching contributions for an owner in a SIMPLE IRA for 1998 and 1999 (i.e. more than 3% of compensation). When returning the excess, should the principal be returned as well as earnings? Moreover, should there be a 1099-R produced, and if so, with what distribution code for principal, and with what distribution code for earnings? Any other issues that I should be aware of here?