I am working on a planning case for a client and was wondering if you could provide me with some re-assurance/clarity.

Client is 64 and I am looking to do a Roth Conversion. We would convert this year, and use the Roth to fund a 5 yr period certain payout annuity, with monthly payments beginning 01/01/2024. The converted amount would be 215k, and the monthly 5-year period certain payments would be $4018. My understanding is gains of Roth conversions are taxable if they are taken with-in the first 5 years of a conversion. I also understand the 5 year window begins on January 1st of the calendar year in which the conversion took place. The final relevant piece of information based on my understanding is that Roth distributions come out on a first in first out basis. Based on the above information, at the end of the 5 yr conversion window, the client would have received 192,864 from the SPIA payout. He wouldn’t actually have receiving any profit on his original investment until the 5th year of the SPIA payout (2028) which would be the 6th calendar year for conversion purposes.

Do you know if there are any special stipulations to the above rules when pertaining to annuitized on period certain only calculations or do you see any flaws in my logic?