We study the O(N ) linear sigma model in 1+1 dimensions by using the 2PI formalism of Cornwall, Jackiw and Tomboulis in order to evaluate the effective potential at finite temperature. At next-to-leading order in a 1/N expansion one has to include the sums over "necklace"' and generalized "sunset" diagrams. We find that -in contrast to the Hartree approximation -there is no spontaneous symmetry breaking in this approximation, as to be expected for the exact theory. The effective potential becomes convex throughout for all parameter sets which include N = 4, 10, 100, couplings λ = 0.1, 0.5 and temperatures between 0.3 and 1 (in arbitrary units). The Green's functions obtained by solving the Schwinger-Dyson equations are enhanced in the infrared region. We also compare the effective potential as a function of the external field φ with those obtained in the 1PI and 2PPI expansions.