Yes, you cannot change the $6,998 nontaxable distribution because the pro-rata rule applies. Part of your $7,000 basis will be applied towards the $2 left in the account. You can see the rest of your $2 basis on line 14 and you will be able to use it when you convert the $2 in the future.
Therefore, this conversion will have $2 taxable.
To verify your Form 1099-R was $7,000 and you entered the $7,000 nondeductible traditional IRA contribution.
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