When and How You Can Withdraw From Your Roth IRA
You can withdraw your contributions anytime, tax-free and penalty-free—but earnings have strict rules
A Roth IRA lets you pull out the money you put in (your contributions) whenever you want, with no taxes or penalties. The earnings those contributions generated are a different story: you cannot touch them before age 59½ without paying income tax and a 10% penalty, with a few narrow exceptions. The IRS tracks contributions and earnings separately, so the first dollars you withdraw are always treated as contributions coming out first.
This distinction makes the Roth IRA uniquely flexible compared to other retirement accounts. You are not locked in, but you do need to understand which part of your balance you are actually withdrawing. The rules differ depending on whether you are taking out your own deposits, growth on those deposits, or money you converted from another account.
Key Takeaways
- Contributions (the money you deposited) can be withdrawn at any time without tax or penalty, regardless of your age or how long the account has been open.
- Earnings can only be withdrawn tax-free and penalty-free after age 59½ and once the account has been open for at least five tax years.
- The IRS considers contributions to come out first when you withdraw, so you can access your own money before touching any growth.
- Conversions from traditional IRAs are treated as contributions for withdrawal purposes, but have their own five-year rule before earnings are accessible.
- Withdrawing earnings before 59½ triggers both income tax and a 10% penalty unless you meet a narrow exception like disability or a first-time home purchase.
How the IRS separates contributions from earnings
When you withdraw money from a Roth IRA, the IRS assumes you are taking out contributions first. This is called the pro-rata ordering rule, and it works in your favor. If your account holds $50,000 in contributions and $15,000 in earnings, your first $50,000 in withdrawals are treated as contributions and come out completely tax-free.
The IRS tracks this using Form 8606, which you file with your tax return whenever you make a Roth conversion or withdraw from a Roth IRA. The form records your total contributions across all your Roth IRAs (the IRS treats multiple Roth accounts as one for withdrawal purposes), so you cannot game the system by withdrawing from one account and leaving another untouched.
Keep records of every contribution you make and every conversion you perform. Your IRA custodian (the bank or brokerage holding the account) will send you a year-end statement, but that statement may not clearly separate contributions from earnings. You need your own records to prove to the IRS how much you contributed. A simple spreadsheet tracking the year, amount, and type of deposit (regular contribution or conversion) is sufficient.
Withdrawal rules for contributions versus earnings
| What You Are Withdrawing | Age Requirement | Account Age Requirement | Tax and Penalty |
|---|---|---|---|
| Contributions (your deposits) | None | None | None |
| Earnings (growth on contributions) | 59½ or older | 5 tax years open | None if both conditions met |
| Earnings before 59½ or before 5 years | Varies by exception | Varies by exception | Income tax + 10% penalty (unless exception applies) |
| Converted funds (first 5 years) | 59½ for earnings only | 5 years from conversion year | 10% penalty on earnings if withdrawn early |
The five-year rule is a calendar rule, not a rolling rule. If you open your Roth IRA on December 15, 2024, the five-year period ends on December 31, 2029. You can withdraw earnings penalty-free starting January 1, 2030, even though only five years and two weeks have passed.
Both conditions must be met for earnings to come out tax-free and penalty-free. If your account is five years old but you are only 50, you cannot withdraw earnings without the 10% penalty. If you are 65 but the account is only three years old, the same penalty applies. Age 59½ and five tax years are both required.
Exceptions that let you withdraw earnings early
The IRS allows you to withdraw earnings before 59½ without the 10% penalty (though you still owe income tax) in these situations: you are disabled, you are a beneficiary withdrawing after the account owner's death, you have unreimbursed medical expenses over 7.5% of your adjusted gross income, you are paying health insurance premiums while unemployed, or you are a first-time homebuyer taking up to $10,000 lifetime.
The first-time homebuyer exception is the most commonly used. You can withdraw up to $10,000 of earnings (not contributions—those are always available) to buy, build, or rebuild a home. "First-time" means you have not owned a home in the past two years; it does not mean you have never owned one. You can use this exception only once in your lifetime across all your IRAs.
The disability exception requires that you be unable to engage in substantial gainful activity due to a physical or mental condition. The IRS does not use the Social Security Administration's definition of disability, so you may may have access to under one program but not the other. You will need medical evidence, and the IRS may request documentation.
None of these exceptions waive the income tax on the earnings themselves—they only remove the 10% penalty. If you withdraw $5,000 in earnings under the first-time homebuyer exception and you are in the 24% tax bracket, you owe $1,200 in federal income tax on that withdrawal.
The five-year rule for converted funds
If you convert money from a traditional IRA to a Roth IRA, the conversion itself starts a new five-year clock. The converted amount is treated as a contribution for withdrawal purposes (you can pull it out anytime), but any earnings on that converted amount cannot be touched penalty-free until five years have passed from the year of conversion.
This matters if you convert a large traditional IRA balance and then need to access the money quickly. You can withdraw the converted principal immediately, but the growth on that conversion is locked until the five-year window closes. Each conversion year has its own five-year period, so if you convert in 2024 and again in 2025, you have two separate five-year clocks running.
The five-year rule for conversions is separate from the five-year rule for the account itself. You can have a Roth IRA open for ten years and still be subject to the conversion five-year rule if you converted money within the past five years. The IRS tracks conversion years on Form 8606, so keep that form with your tax records.
Withdrawals that trigger taxes and penalties
If you withdraw earnings before age 59½ and before the account has been open five tax years, you owe income tax on those earnings at your ordinary tax rate, plus a 10% early withdrawal penalty. The penalty is calculated on the earnings only, not on the contributions.
Example: You opened a Roth IRA three years ago and contributed $6,000 per year for a total of $18,000 in contributions. The account has grown to $22,000, meaning $4,000 in earnings. You withdraw $10,000. The first $10,000 is treated as contributions and comes out tax-free. If you withdraw $12,000 instead, the first $10,000 is contributions (tax-free), and the remaining $2,000 is earnings. You owe income tax on that $2,000 plus a $200 penalty (10% of $2,000).
The penalty does not apply if you meet one of the exceptions listed above. But the income tax still does. If you withdraw earnings under the first-time homebuyer exception, you pay tax but not the penalty. The tax is due when you file your return for the year of withdrawal.
How to request a withdrawal from your custodian
Contact your IRA custodian (your bank, brokerage, or investment firm) and request a withdrawal. Most custodians let you do this online, by phone, or by mail. You will need to specify the amount and whether you want it deposited to your bank account or sent by check. Some custodians require you to liquidate investments first if your withdrawal is larger than available cash in the account.
The custodian will process the withdrawal and send you a Form 1099-R showing the gross amount withdrawn. You will report this on your tax return. If you withdrew only contributions, you report the withdrawal but owe no tax. If you withdrew earnings, you report the taxable amount and pay tax on it (and the penalty if applicable).
Keep the Form 1099-R and your withdrawal confirmation. If the IRS questions your withdrawal, you will need to show that the money came out of a Roth IRA and prove how much was contributions versus earnings using your Form 8606 records. Your custodian can provide a statement showing your contribution history if you need it.
Frequently Asked Questions
Can I withdraw my contributions without reporting it to the IRS?
You must report the withdrawal on your tax return using Form 1099-R, which your custodian sends to both you and the IRS. However, you owe no tax on contributions, so the withdrawal itself does not increase your tax bill. Reporting it simply documents that the money left the account.
What happens if I withdraw earnings and do not know I owe a penalty?
The IRS will assess the penalty when you file your tax return or during an audit. You can request a waiver of the penalty if you have reasonable cause, such as relying on incorrect advice from a tax professional. File Form 2688 or write a letter explaining the circumstances.
Can I put the money back if I withdraw too much?
Yes, through a process called a rollover. You have 60 days to deposit the withdrawn funds back into a Roth IRA (the same one or a different one). If you miss the 60-day window, the withdrawal is permanent and you cannot undo the tax consequences. Some custodians allow direct trustee-to-trustee transfers, which do not count against the 60-day limit.
Do I have to withdraw money from my Roth IRA at any age?
No. Unlike traditional IRAs, Roth IRAs have no required minimum distributions during your lifetime. You can leave the money in the account to grow indefinitely. Beneficiaries who inherit a Roth IRA do have withdrawal requirements, but the original owner does not.
If I am disabled, can I withdraw earnings without paying tax?
You can withdraw earnings without the 10% penalty if you are disabled, but you still owe income tax on the earnings themselves. The exception removes the penalty only, not the tax.