It is not difficult to report. The amount will be included as part of your Form 1099-R reporting the distribution from your Traditional IRA. You will also have information entered or carried over showing the basis (non-deductible) contributions in that Traditional IRA. The amount that is in excess of the basis (the interest in the account) will automatically be included on your return as taxable income.
It is your choice regarding what you wish to do with the interest in the IRA. I just wanted you to be aware that converting it to a Roth IRA is possible since there is not a limitation on the amount that can be converted. This choice would prevent you from paying the early distribution penalty, which would be minimal, but you can still simply take a taxable distribution for the amount of interest.
@koonsup
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