Generally, you should keep track of your regular contribution and conversions separately.
Simply explained, when you take a distribution you first will take from your regular contributions, then from your conversions and then from your earnings last.
Also, there can be a 10% early withdrawal penalty on conversion if the are withdrawn before 5 years are up. Therefore, it is important to keep track of the taxable and nontaxable conversions within the last 5 years. Please see Distributions of conversion and certain rollover contributions within 5-year period for additional information.
In your example, you could withdraw the $1,000 tax- and penalty-free since regular contributions are distributed first.
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