Code 2 would never be used to report a return of contribution from an IRA. When the Form 1099-R reporting a distribution from a traditional IRA (IRA/SEP/SIMPLE box is marked) has code 2, the Form 1099-R is typically reporting a Roth conversion. The only other reason that in 2020 code 2 might be used is if the custodian is indicating that the distribution is a Coronavirus-Related Distribution, but IRA custodians generally don't do this because that don't what to take any responsibility for determining if you were qualified to receive a CRD.
