Early Withdrawal

Question: Do I owe 10 Early Withdrawal Penalty on IRA conversion?

I’m under 59.5 years of age. Let’s say I withdrew $100 from State Retirement Agency. I rolled it over into Rollover IRA and then converted the entire $100 into Roth IRA. I understand I owe income tax on $100 conversion, but do I owe 10% penalty on $100 conversion due to my age?
Well, I received is if the state agency sent me the check 1st and then I send the IRA fiduciary company the check within 60 days. Does the 10% penalty still not hold?

Answer: again, a distribution is not a conversion
if you withdraw $100 from your IRA you will pay the 10% penalty if you are under 59 1/2
if you convert $100 to a Roth, you will pay the income tax on it for the conversion
but once you convert to the Roth it is no longer taxable upon distribution

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