1 ... you need to have the prior year non deductible contribution on the form 8606 ... did you miss that step last year? Did the 8606 info not transfer ?
https://ttlc.intuit.com/questions/1899503-what-is-form-8606-nondeductible-iras-used-for
2... the $3 is a taxable conversion. FYI ... it you do this again in the future leave the contribution in something that doesn't pay any interest.
