dmertz
Level 15

Retirement tax questions

The code 2 in box 7 indeed indicates that the transaction being reported on the Form 1099-R is a Roth conversion, not a recharacterization.  (About the only other thing code 2 would be used for when the IRA/SEP/SIMPLE box is marked is an IRS levy, and I think it's safe to assume that this is not reporting an IRS levy.)