@NCperson Thank you for taking the time to respond. I was wondering why you asked me the age question and now I understand - It appears that I was not clear enough in my questions and you misunderstood.
Let me clarify: I don't intend to pay the distribution tax from the retirement account, rather from my bank account. That eliminates the 10% penalty since the converted amount is considered a direct rollover from Transitional IRA to Roth. I have been converting every year (that made financial sense) and have never been subject to any penalty.
