Regular contributions and conversions you have held over 5 years can come out anytime before the Roth is qualified and they would be tax and penalty free. Conversions held less than 5 year would incur a 10% penalty unless you are over 59.5 or meet another exception such as disability.

Yes, a fully qualified distribution only means that the earnings can now be distributed tax and penalty free, and this is the only way earnings come out without a cost. Qualification also means that you do not have to keep track of the composition of your Roth (amounts of regular and conversion contributions) any longer and do not need Form 8606 any longer to report qualified distributions. Distributions go only on line 15a of Form 1040.

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