I think I am clear on the conversion rules but would like verification!

I will be converting IRA funds over a 4 year period and the converted funds will be in annuities with income riders. The breakdown is as follows:

250k converted in 2023 will fund an annuity with an income rider issued in January of 2024.

250k converted on January 2nd 2024 will fund an annuity with an income rider that will be issued after the conversion.

250k (minus 1 years of income from the annuity) will be converted on January 2nd 2025 from an annuity with income rider funded in 2024.

250k (minus 2 years of income from the annuity) will be converted on January 2nd 2026 from an annuity with an income rider funded in 2024).

In short, we are applying for 4 separate annuities with income riders, and converting each one in it’s entirety over four calendar years with 2023 and 2024’s conversions taking place before the annuities are issued and 2025 and 2026 conversions taking place post annuity issue.

The income benefits from all 4 annuities will begin immediately after issue (in Jan/Feb 2024). I understand the value used to determine the taxable amount on the conversion will be based on an actuarial calculations considering both the market value of the contract plus the actuarial present value of the benefits.

My question is as long as the client does not withdrawal more than the taxable amount of the conversion with in the 5 year window, will all the withdrawals received be conversion amounts based on IRS Roth withdrawal order rules, therefore not subject to taxation. Stated differently, will payments to the client be considered “earnings”, only after the converted amount has been fully withdrawn?

Thank you in advance!!!