Distribution Code 2 - reported on 1099-R

[Jilliandiz]

What does distribution code 2 mean on 1099-R.

I know it means early distribution...but what's the exception? I can't figure it out.

Thanks.

[WDIK]

Some of the most common uses of code 2 include:

1) Roth IRA conversion.

2) Part of a series of substantially equal periodic payments made for the life of the taxpayer.

3) Distributions after separation of service for someone age 55.

Sections 72(q), (t) and (v) provide other exceptions from the 10% tax as well.