The payer might have prepared the Form 1099-R incorrectly. They were required to put the same amount in box 2a as is in box 1 because the taxable amount of a distribution from an IRA must be assumed by the payer to be the same as the gross amount. Any difference in the taxable amount would have to be determined on Form 8606 in your tax return where any basis in nondeductible traditional IRA contributions would be applied. (Since you say that this was a conversion from your traditional IRA, I assume that the IRA/SEP/SIMPLE box is marked on this form.)
Also, make sure that, when asked, you indicate that you did a combination of converting, rolling over and cashing out, then indicate the entire gross amount as the amount converted. Do not simply indicate that you rolled the distribution over since a rollover makes that portion of the distribution nontaxable.
Code K indicates that the conversion involved an asset that does not have a readily available Fair Market Value. If that's the case, the amount in box 1 would have to have been determined by obtaining an appraisal, otherwise the amount in box 1 is going to be incorrect.
