Rolled over 401K to IRA - Can i take out withdrawls if I moved to Roth IRA?

Left my previous company (Credit Suisse) in 2021 and rolled over my 401K to my new employer. About 2 years after leaving the company, they got bought out and basically gave everyone who was employed in 2021 roughly 5K in their 401K, which I then transferred into a Merrill Lynch IRA since my employer is Bank of America.

My question is - since it is in an IRA, does that 5k (which is now $7,500) count as a contribution and therefore be eligible for me to take out penalty-free once I convert it to a Roth IRA, or not, since the funds were originally from a pre-tax 401K? I was not sure if I would immediately be able to withdraw the funds after converting or not, and since this was from a traditional 401K, if this is even an option.