First, an employer sponsored retirement plan is NOT a Traditional IRA - it is probably a 401(k) plan.
Any tax withholding is part of the distribution and will be taxable income include in your AGI. If you can rollover the entire amount and pay estimated tax from other funds then there will be more money to convert conserving the retirement account. That is usually recommended of you can afford the tax from other funds.
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
