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How to Withdraw Money From Your Roth IRA Without Penalties

By Felix Thorpe · Retirement Accounts Writer

You can withdraw your contributions anytime, but earnings have strict rules

You can take out the money you personally contributed to a Roth IRA at any time, tax-free and penalty-free. The earnings your contributions generated—the investment gains—are a different story. You can withdraw those earnings before age 59½ only in narrow circumstances, and doing so outside those circumstances costs you a 10% early withdrawal penalty plus income tax on the earnings themselves.

The IRS tracks contributions separately from earnings in your account. When you withdraw money, the IRS treats contributions as coming out first. This means if you have $50,000 in contributions and $15,000 in earnings, you can pull out up to $50,000 with no tax or penalty. Anything beyond that is treated as earnings withdrawal and triggers the rules below.

Key Takeaways

  • Contributions you made yourself can come out anytime without tax or penalty, regardless of your age or how long the account has been open.
  • Earnings withdrawals before age 59½ are taxed as ordinary income and hit with a 10% penalty unless you meet a narrow exception like disability, medical expenses, or first-time home purchase.
  • The five-year rule requires that at least five tax years have passed since you first opened any Roth IRA before earnings can come out penalty-free at age 59½ or later.
  • Conversions from traditional IRAs to Roth IRAs have their own five-year holding period before the converted amount can be withdrawn penalty-free.
  • Your brokerage or bank will report your withdrawal on Form 1099-R, and you report it on your tax return; the IRS does not automatically know whether you withdrew contributions or earnings.

Withdrawing contributions versus earnings

Your Roth IRA holds three types of money: contributions you made, conversions from other accounts, and earnings. The IRS lets you pull out contributions without penalty because that money was already taxed when you earned it. Earnings are the investment returns—dividends, capital gains, interest—that grew tax-free inside the account.

When you request a withdrawal, the IRS assumes contributions come out first under what is called the "ordering rule." If your account statement shows $40,000 in contributions and $12,000 in earnings, and you withdraw $30,000, all $30,000 is treated as a contribution withdrawal. You owe nothing. If you withdraw $50,000, the first $40,000 is contributions (no tax or penalty) and the remaining $10,000 is earnings (subject to tax and penalty unless an exception applies).

Your brokerage will not automatically separate these for you on the withdrawal form. You need to know your contribution basis—the total amount you have put in over the years. Your year-end statements usually show this, or you can contact your provider directly and ask for your contribution basis.

The five-year rule for earnings withdrawals

Even if you meet an exception to the 10% penalty, you cannot withdraw earnings penalty-free before age 59½ unless at least five tax years have passed since you opened your first Roth IRA. This is separate from the age requirement and applies to everyone.

The five-year clock starts on January 1 of the tax year you opened your first Roth IRA, not the day you funded it. If you opened an account on December 15, 2023, the five-year period began January 1, 2023. If you opened one on January 5, 2024, the period began January 1, 2024. After five tax years pass, you can withdraw earnings penalty-free if you are 59½ or older, or if you meet one of the exceptions listed below.

If you have multiple Roth IRAs, the five-year rule applies to all of them together. Opening a second Roth IRA does not restart the clock. However, if you convert money from a traditional IRA to a Roth IRA, that converted amount has its own separate five-year holding period before it can be withdrawn penalty-free.

Exceptions that allow early earnings withdrawal

The IRS permits penalty-free withdrawal of earnings before age 59½ in these specific situations:

  • Disability: You must be unable to engage in any substantial gainful activity due to a physical or mental condition. The Social Security Administration or Railroad Retirement Board must have determined you are disabled, or a physician must certify the condition is expected to result in death or last indefinitely.
  • Medical expenses: You can withdraw earnings to cover unreimbursed medical expenses that exceed 7.5% of your adjusted gross income in that tax year. You do not have to be enrolled in a health plan.
  • First-time home purchase: Up to $10,000 lifetime can come out penalty-free for a first-time home purchase. "First-time" means you have not owned a home in the past two years. The money must be used within 120 days of withdrawal.
  • Substantially equal periodic payments: You can withdraw a calculated amount each year based on your life expectancy and account balance. Once you start, you must continue for five years or until age 59½, whichever is longer. Stopping early triggers penalties on all prior withdrawals.
  • Death or divorce: Beneficiaries of a deceased account owner can withdraw earnings penalty-free. If you are splitting a Roth IRA in a divorce, the transferred portion is treated as your own account with its own five-year rule.

These exceptions still require the five-year rule to be met. If you opened your Roth IRA three years ago and become disabled, you can withdraw contributions anytime, but earnings withdrawals will be taxed (though the 10% penalty is waived).

Conversions and the separate five-year holding period

If you converted money from a traditional IRA, SEP IRA, or SIMPLE IRA to a Roth IRA, that converted amount sits under its own five-year rule. The converted funds must stay in the account for five tax years before you can withdraw them penalty-free, even if your original Roth IRA has been open longer.

The five-year period for a conversion starts on January 1 of the tax year you made the conversion. If you converted $50,000 in 2023, the five-year period runs from January 1, 2023 through December 31, 2027. You can withdraw it penalty-free starting January 1, 2028, assuming you are 59½ or meet an exception.

Conversions also split into two parts: the amount converted (the principal) and any earnings that accumulated after the conversion. The converted principal can come out after five years without penalty. Earnings on the converted amount follow the same rules as earnings on regular contributions—they need the five-year rule plus age 59½ or an exception.

How to request a withdrawal and what happens next

Contact your Roth IRA provider—your bank, brokerage, or investment company—and request a withdrawal. Most providers have online portals where you can initiate this, or you can call and speak to a representative. You will need to specify the amount and whether you want a check mailed, a direct transfer to another account, or funds held for pickup.

The provider will send you a Form 1099-R for that tax year showing the gross amount withdrawn. You receive a copy and the IRS receives a copy. You are responsible for reporting the withdrawal on your tax return and calculating whether any portion is taxable. If you withdrew only contributions, you report it but owe no tax. If you withdrew earnings, you report the taxable portion and any applicable penalty.

If you withdrew earnings before age 59½ outside an exception, you must file Form 5329 with your tax return to report the 10% penalty. The penalty is calculated on the earnings portion only, not the full withdrawal amount. If you may have access to for an exception, you still file Form 5329 but check the box for the exception that applies, which removes the penalty.

Frequently Asked Questions

Can I withdraw my contributions without reporting it to the IRS?

Your provider reports the total withdrawal on Form 1099-R, which goes to the IRS. You must report it on your tax return. However, if you withdrew only contributions, you owe no tax on that amount. The IRS does not automatically know whether you withdrew contributions or earnings—you are responsible for calculating and reporting the taxable portion correctly.

What happens if I withdraw earnings and do not may have access to for an exception?

You owe ordinary income tax on the earnings at your regular tax rate, plus a 10% early withdrawal penalty. If you withdrew $10,000 in earnings and your tax bracket is 22%, you owe $2,200 in tax plus $1,000 in penalty, totaling $3,200. You report this on Form 5329 when you file your return.

Can I put the money back if I change my mind?

You can roll the withdrawal back into a Roth IRA within 60 days, but only once per 12-month period across all your IRAs. This is called a rollover. If you miss the 60-day window, the withdrawal is permanent and taxable. Rollovers do not reset the five-year rule—the clock keeps running from when you first opened the account.

Do required minimum distributions apply to Roth IRAs?

No. During your lifetime, you never have to withdraw money from a Roth IRA. Beneficiaries who inherit a Roth IRA do have withdrawal requirements, but the rules depend on when you died and who inherits the account. Your beneficiary should contact the provider for guidance on their specific situation.

If I have multiple Roth IRAs, can I withdraw from just one?

Yes. You can withdraw from any single Roth IRA without touching the others. However, the five-year rule and contribution basis are calculated across all your Roth IRAs combined. If you have $30,000 in contributions spread across three accounts and $8,000 in total earnings, your first $30,000 withdrawn is treated as contributions regardless of which account it comes from.