dmertz
Level 15

Get your taxes done using TurboTax

As the other have said, code 2 is not to be used for distributions made after you have reached age 59½, so the plan is using the incorrect code.  However, code 2 and code 7 are treated the same by TurboTax (no early-distribution penalty), so the plan's misuse of the code 2 does not affect your tax return.  Still, they should get their act together and use the correct code.