It is my understanding that one can withdraw the principal from a Roth IRA at any time without tax or penalty. That tax and penalties only apply when one withdraws the interest/dividends/capital gains that have accrued in the Roth.
So my first question is, is my understanding correct?
My second question is, assuming one withdraws some principal, how does one convey that information to the IRS so they don't try to collect tax/penalties or think you are trying to evade? I've looked over form
5329 but don't see anything that seems like what I'm looking for.Thanks!
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