Thank you very much for the info.

I would agree that the 1099 info should not be changed and that "rollover" needs to be shown on the tax return.

The payer withheld 20% as required.  My research shows that Section 3405 (c) (1) speaks to the mandatory withholding by the payer.  

In this case, there's no early withdrawal penalty because Code 2 is used in Box 7, not Code 1 which signifies early withdrawal.

Thank you again for your assistance.  Very helpful