If I convert $100K from tIRA to Roth IRA in year 1, then take $40K out in year 3 (paying the 10% penalty), then it grows to $200K and in year 6 I take $100K out, isn't my year 6 $100K distribution penalty free because that's what I converted in year 1, and it's now ok to take out contributions penalty free?
TurboTax is telling me only $60K is tax free (it has my 10+ year tax return history, so I'm assuming it's going back and counting my year 3 withdrawal as part of the contribution). Is this correct?
I haven't found the right form to complete to demonstrate that I'm withdrawing contributions, not returns.