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The IRS has prescribed a distribution hierarchy for Roth IRA assets. Contributions are always taken first; conversions (if any) are second in order by year of contribution, with converted pre-tax assets taken first and converted after-tax assets taken second. Earnings are considered distributed last.
Contributions are always distributed tax and penalty free. Converted pre-tax assets are distributed tax and penalty free as long as they have been held in the account for five years. If not, a 10 percent would apply to the distribution. Converted after-tax assets are always distributed tax and penalty free. Earnings are distributed tax and penalty free if the Roth IRA has existed for five years and the distribution is done on or after age 59 1⁄2, or following death, disability or first-time home purchase. Otherwise the earnings would be taxable and subject to penalty unless a penalty exception applies.
To get a printable copy of the full table summarizing the Roth IRA distribution ordering rules, click here.