A non-qualified Roth distribution - because you didn't meet the 5-year rule - would cause any earnings withdrawn as part of the distribution to be taxed at your ordinary income tax rate. If you are over 59 1/2, there is no penalty.
Money contributed to a Roth is always taxed prior to the contribution and can be withdrawn tax free.
You pay income tax on the money, then put the net amount into the Roth IRA. (No tax deduction is taken).
You convert pre-tax dollars into the Roth IRA, which creates a taxable event for that year, where the converted amount is added to your income and taxed.
Please take a few moments to read this great article.
Hope this helps!
Cindy
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