40 year old plans to rollover $60,000 traditional 401(k) to a new Roth IRA. 20% to be withheld for taxes. This 20% ($12,000) would be subject to the 10% penalty, correct? Once in the Roth and assuming no future contributions to the Roth, the $48,000 can be distributed without the 10% penalty tax after 5 years, correct? Prior to 5 years there would be the penalty tax, correct?
Earnings would have the penalty tax until 59 1/2, correct?