That is correct. When you are under age 59 1/2 and make a Roth IRA conversion, code 2 is used on Form 1099-R.
Follow these steps to input your Form 1099-R reporting the conversion:
- Select Wages & Income
- Locate the Retirement Plans and Social Security section and select Show more, then select Start or Revisit next to IRA, 401(k), Pension Plan Withdrawals (1099-R)
- Answer Yes to Did you get a 1099-R in 2023?, then Continue.
- If you land on the screen, Your 1099-R Entries, select Add Another 1099-R
- Select how you want to enter your 1099-R (import or type it in yourself) and walk through the interview questions.
- Answer the questions on the following screens, until you reach Tell us if you moved the money through a rollover or conversion.
- Select I converted some or all of it to a Roth IRA and Continue
- Next, choose Yes, all of this money was converted to a Roth IRA and click Continue
- Continue answering questions until you come to the screen, Review your 1099-R info.
For more information, please see this TurboTax Help Article: How do I enter a Backdoor Roth IRA conversion?