However, if the rollover from the 401(k) to the Roth IRA was not entirely from after-tax money in the 401(k), the distribution of from the Roth IRA will come first from the portion that was taxable when rolled over from the 401(k) and will be subject to early-distribution penalty. The ordering rules for Roth IRA distributions have taxable conversions being distributed before nontaxable conversions. Distributions of taxable conversion before 5 years from the beginning of the year in which the conversion occurred are subject to early-distribution penalty even though they are not subject to income tax.
This also assumes that you have no basis in regular Roth IRA contributions that would come out tax and penalty free before any converted amounts.
