There is no complication. When preparing your 2023 tax return, make sure to include the year-end balance in this traditional IRA when TurboTax asks for your year-end balance in traditional IRAs.
In 2024, simply include these remaining funds in the conversion when you do your 2024 Roth conversion. There is no limit on the amount that you are eligible to convert in any one year. Your only limitation is on the amount that you are eligible to contribute to the traditional IRA for 2024 ($7,000).
Given the current interest rates, it's likely that the same thing will happen again this year where your traditional IRA will receive some amount of dividend after you do the conversion.
