Can I withdrawal my cost basis from my Roth IRA without penalty?

[john14verse6]

I opened a traditional IRA in 1990.  In 1997 when the Roth IRA was introduced, I converted 100% of my traditional IRA to a Roth. I had about $24,000 in it at the time. Back then the IRS has a special rule that allowed taxes on converted funds to be paid out over 4 years. So I claimed $6,000 per year for 4 years as ordinary income and paid taxes on it.

The cost basis worksheet I have been keeping for the last 2 decades shows I have a cost basis of $40,000.  Im assuming this is comprised of the $24,000 I converted PLUS $16,000 of contributions I made when it was a traditional IRA that I did not take a deduction on.  

I'm assuming if I withdrawal all $40,000 this year, I will not have to pay any tax on it, plus I wont have an early withdrawal penalty.  Im 56 years old.  Is my thinking correct?

[macuser_22]

The amount that you made direct contributions and/or  converted and paid tax on is considered to be your Roth basis that can be withdrawn at any time tax and penalty free.  Any earnings withdrawn are taxable and subject to an additional 10% penalty if under age 59 1/2.      You would find the taxable amount for each year that was converted on the 8606 form for that year under the conversion section taxable amount.