You needed to indicate that you did a combination of rolling over, converting and cashing out. By doing it the way that you did, TurboTax seems to have assumed that the $25,000 is not taxable because it was rolled over to another qualified retirement account.
Edit the 1099-R to indicate that you did a combination. if that doesn't produce the correct result, I suggest deleting and reentering this 1099-R, indicating that you did a combination.
