It's not the wrong code. The issuer has the code that applies to their perspective.

For instance: Code 1 is Early distribution.

What you are doing is entering how the taxpayer handled it. You won't change the 1099-R at all. You enter that info as you see it provided.

You would need to provide more details for us, such as age of the taxpayer, type of account, rolled directly (trustee-to-trustee), into the same type of account, withholding or not, etc.

See this article: https://proconnect.intuit.com/community/individual/help/proseries-form-1099-r-faq-s/00/4853