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I'm confused on what you did.  You converted from a Traditional IRA to a ROTH IRA?  

It should be option 2 combination. You only converted 60,000.  The 15,000 was cashed out for taxes.  To convert the whole amount you needed to add back in the 15,000 from your own money.  

Then yes to option 2 is 60,000.

 

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