No, this transaction will not be reported with code G. Code G for a distribution from a traditional IRA (IRA/SEP/SIMPLE box marked) is only used to report a direct rollover to a traditional account in a qualified retirement plan. A conversion from a traditional IRA to a Roth IRA will be reported with 7 if age 59½ or over, otherwise with code 2 if done in-house or with code 1 if done indirectly.
Regardless of how the conversion is done, enter the Form 1099-R, answer the follow-up questions to indicate that you moved the money to another retirement account and the amount that you converted to Roth, then be sure to click the Continue button on the Your 1099-R entries page to reach the questions needed to determine the taxable amount of the Roth conversion, including indicating whether you have basis in nondeductible traditional IRA contributions and the amount, and your year-end balance in traditional IRAs. If you have no basis in nondeductible traditional IRA contributions, the entire amount distributed from the traditional IRA is taxable.
