Sorry, not an IRA question but hoping an expert lurking on this site can help

Qualified plan partiicpant dies with the plan Trustee owning a $30,000 face amount life insurance policy on his life, cash value immediately prior to death was $10,000

I think the particpant’s beneficiaries pay tax on $10,000 and the $20,000 pure life insurance amount is tax free

How is the $30,000 distribution reported on the 1099-R ($30,000 in Box 1 and $10,000 in Box 2?)and what distributuion code applies?

Thanks