When and How You Can Withdraw From Your Roth IRA

You can withdraw your contributions anytime without penalty, but earnings have strict rules

A Roth IRA lets you pull out the money you put in—your contributions—whenever you want, tax-free and penalty-free. The earnings those contributions grew into are a different story. You can withdraw earnings before age 59½ only in narrow circumstances, and doing so outside those circumstances costs you a 10% penalty plus income tax on the growth.

The IRS tracks contributions and earnings separately in your Roth account. When you take money out, the IRS assumes you withdraw contributions first, then earnings. That order matters because it determines whether you owe tax and penalty.

Key Takeaways

• You can withdraw contributions (the money you deposited) at any time without tax or penalty, regardless of your age or how long the account has been open.
• Withdrawing earnings before age 59½ triggers a 10% penalty and income tax unless you meet a narrow exception like disability, medical expenses, or a first-time home purchase.
• The five-year rule requires that at least five tax years pass since you first opened any Roth IRA before you can withdraw earnings tax-free, even at age 59½.
• Conversions from traditional IRAs to Roth IRAs have their own five-year holding period before you can withdraw the converted amount without penalty.
• The IRS assumes you withdraw contributions before earnings, so knowing your contribution history protects you from unexpected tax bills.

Withdrawing contributions versus earnings

Your Roth IRA balance is split into two parts: what you put in (contributions) and what it earned (growth). The IRS calls the growth "earnings" or "income." When you withdraw, the IRS assumes you take contributions out first.

If you have contributed $50,000 over several years and your account is now worth $65,000, you can withdraw $50,000 anytime without tax or penalty. The $15,000 in earnings stays subject to the withdrawal rules. You do not need to reach a certain age or wait a certain number of years to access your contributions.

This is one of the Roth IRA's main advantages over a traditional IRA. In a traditional IRA, you cannot separate contributions from earnings—any withdrawal is treated as a mix of both, and you owe tax on the portion that came from deductible contributions or investment growth.

The five-year rule for earnings

Before you can withdraw earnings tax-free, at least five tax years must have passed since you opened your first Roth IRA. This is the five-year holding period, and it applies even if you are 59½ or older.

The clock starts on January 1 of the tax year in which you opened the account, not on the day you opened it. If you opened a Roth IRA on December 15, 2024, the five-year period began on January 1, 2024. The earliest you could withdraw earnings tax-free would be January 1, 2029.

If you withdraw earnings before five years have passed, you owe income tax on the withdrawal plus a 10% penalty—unless you meet one of the narrow exceptions. The exceptions are disability, medical expenses exceeding 7.5% of adjusted gross income, health insurance premiums while unemployed, and a first-time home purchase (up to $10,000 lifetime).

Withdrawing earnings before age 59½

If you have met the five-year holding period but are younger than 59½, you can still withdraw earnings without penalty only if you fall into one of four categories. The IRS calls these "may have access to exceptions."

Disability: You must be unable to engage in substantial gainful activity due to a physical or mental condition that is expected to last indefinitely or result in death. The IRS requires medical documentation and a information from the Social Security Administration or Railroad Retirement Board, or a physician's statement.

Medical expenses: You can withdraw earnings to cover unreimbursed medical expenses that exceed 7.5% of your adjusted gross income for that tax year. The expenses must have been incurred in the year of withdrawal or the prior year. You must itemize deductions on your tax return to use this exception.

Health insurance premiums while unemployed: If you received unemployment benefits for at least 12 consecutive weeks and withdraw within 60 days of returning to work, you can take out earnings for health insurance premiums without penalty. You still owe income tax on the earnings.

First-time home purchase: You can withdraw up to $10,000 in earnings (lifetime limit) to pay for may have access to acquisition costs of a first home—down payment, closing costs, or construction. "First-time" means you have not owned a home in the prior two years. You still owe income tax on the withdrawal.

Conversions and the separate five-year rule

If you convert money from a traditional IRA or 401(k) to a Roth IRA, that converted amount has its own five-year holding period. You cannot withdraw the converted funds without penalty until five years have passed since the conversion, even if your original Roth IRA met the five-year rule.

This rule applies only to the converted amount, not to contributions you made directly to the Roth. If you converted $30,000 in 2024 and contributed $7,000 directly, you can withdraw the $7,000 anytime, but the $30,000 is locked until 2029 (unless you meet an exception).

The five-year period for a conversion is separate for each conversion. If you convert $20,000 in 2024 and another $15,000 in 2025, each conversion has its own five-year clock. The 2024 conversion can be withdrawn penalty-free starting in 2029; the 2025 conversion in 2030.

Withdrawals at age 59½ and beyond

Once you reach 59½ and have met the five-year holding period, you can withdraw your entire Roth IRA balance—contributions and earnings—tax-free and penalty-free. There is no required minimum distribution (RMD) during your lifetime, so you can leave the money untouched as long as you want.

If you have not met the five-year holding period by age 59½, you can still withdraw contributions anytime, but earnings remain subject to tax and the 10% penalty until five years have passed since you opened the account.

How to report withdrawals on your tax return

When you withdraw from a Roth IRA, the custodian (your bank, brokerage, or fund company) reports the withdrawal to the IRS on Form 5498-R. You receive a copy and must report it on your tax return using Form 8606.

Form 8606 is where you track the difference between contributions and earnings. If you have multiple Roth IRAs, you must aggregate them on Form 8606—you cannot treat them separately for tax purposes. The IRS assumes you withdraw a pro-rata share of contributions and earnings across all your Roth accounts.

If you withdraw earnings before meeting the five-year rule or before age 59½ (and do not may have access to for an exception), you report the taxable portion on your 1040 and attach Form 5329 to calculate the 10% penalty.

Frequently Asked Questions

Can I withdraw my Roth contributions if I am under 59½?

Yes. You can withdraw contributions at any age without tax or penalty. The IRS assumes you withdraw contributions first, so as long as you have not withdrawn more than you contributed, you owe nothing. Keep records of your contributions to prove this to the IRS if needed.

What happens if I withdraw earnings before five years?

You owe income tax on the earnings plus a 10% penalty, unless you meet one of the four exceptions (disability, medical expenses, unemployment insurance premiums, or first-time home purchase). The tax is due when you file your return for that year.

Do I have to take money out of my Roth IRA at any point?

No. Unlike traditional IRAs, Roth IRAs have no required minimum distributions during your lifetime. You can leave the money in the account as long as you want. Your beneficiaries will have different rules after you pass away.

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

You can withdraw from whichever account you choose, but the IRS treats all your Roth IRAs as one account for tax purposes. If you have $40,000 in contributions and $10,000 in earnings across three accounts, a $30,000 withdrawal is treated as 75% contributions and 25% earnings, regardless of which account you withdraw from.

What is the difference between a Roth withdrawal and a Roth conversion?

A withdrawal takes money out of your Roth IRA. A conversion moves money from a traditional IRA or 401(k) into a Roth IRA. Conversions are taxable in the year they occur and have their own five-year holding period before you can withdraw the converted amount penalty-free.