They are correct. They cannot refund money already sent to the IRS. If you did not replace the tax withheld with other funds when you converted (which you could have), then only the 1099-R box 1 minus the withholding was converted.
Enter the 1099-R and the box 4 withholding will be applied to your tax return to offset your tax liability or add to your refund - same as a refund of the withholding.
**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.**
