This is clearly more complicated than I thought. The distributions doesn't seem to cancel the contributions even if done in the same tax year and even if the account is now clear for distributions.
So even if distributions are equal to contribution for a tax year and the contribution is, lets say only $2K, one may be having to pay excess limits penalty if the income is too high to allow a $2K contribution.
Further, I am worried about the 1 time limit "rollover"per year mentioned. On this topic, does this 1 time per year limit applies to a traditional Roth conversion as well? For instance, converting $5K on February and another $5K in June to the same Roth from the same IRA: Is this allowed?
