Retirement tax questions

Thanks @dmertz 

 

I didn't realize that these funds are treated differently depending on how they were transferred - through contribution or conversion.

 

It seems like every dollar I convert from a non-deductible IRA to a Roth IRA, the 5-year rule applies, and that dollar can be withdrawn with penalties.

Could you please explain why in my case the $1000 out of the total $1100 would be penalty and tax-free? Aren't they sourced with the same conversion?