Retirement tax questions

You can always withdraw your Roth IRA principal contributions without tax.  The withdrawal ordering rules assume you always withdraw contributions first, if you have any in the account. 

 

If you withdraw investment earnings and the account is less than 5 years old or you are under age 59-1/2 (or both), you will owe income tax and a 10% penalty on the earnings only.  The CARES act exempts you from the 10% penalty if you certify that the withdrawal was COVID-related, and allows you to spread the income tax over 3 years if you want to. 

 

Unless you have previously withdrawn all your original contributions, you might not owe any tax on only a $5000 withdrawal.