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I think I found the answer, and the five-tax-year hurdle still has to be met to avoid a penalty. See the paragraph following the bulleted qualifications in Roy's article here:

Welcome to the wonderful world of simplified tax law. (Be sure to write your representatives in Congress and thank them.)

What the 'graph you refer to says is that the distribution of a conversion within 5 years would be "nonqualified." This is true. What that 'graph doesn't say is that if you take a nonqualified distribution after age 59 1/2, there's no penalty, just tax. Since you've already paid tax on a coversion at the time of conversion, there would be no penalty for a subsequent nonqualified distribution of it.

Phil
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