Great question Andy!
Well... let's make sure you are able to make the conversion. One of two conditions has to be met before you can do so. You must either be over 59 1/2 years of age so you can withdraw your retirement funds penalty-free at will, OR you must no longer be working for the sponsoring employer.
If you are able to make the conversion, the 5 year rule is for earnings only. You can withdrawal your contributions (principal) at any time and any age without penalty and tax free. {That's because you paid taxes on the contribution (principal) at the time of conversion.} If you 59 1/2 or above, you will want to wait the 5 years from the FIRST contribution to withdrawal the earnings tax free. If you are under 59 1/2 and you withdrawal more than the original contributed (principal) amount, well then not only will you pay taxes on the earnings but also 10% penalties no matter when you take the withdrawal. Of course, there are ALWAYS exceptions... It is the IRS. 😀
Also, remember the year of conversion you will pay tax on that amount at your current tax rate. So prepare for that at tax time.
Here's a couple of great articles to reference:
Roth IRA Withdrawal Rules and Penalties
Roth Account in Your Retirement Plan
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