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I don't see a problem with the post. A 10% penalty applies to any distribution allocable to conversion made during the five-year period beginning with the year of the conversion unless 72(t) applies. The post makes this rule very clear.

Assuming you met the five year rule above, the 10% penalty only applies to taxable distributions (earnings). A conversion was taxable in the year it was converted, so there would not be any additional tax.

There are special rules of 1998 conversion but it doesn't sound like that was the situation the poster was describing.
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