You can withdraw your contributions anytime without penalty, but earnings withdrawals depend on your age and how long you've held the account
A Roth IRA has two separate withdrawal rules: one for the money you put in (contributions) and one for the growth that money earned (earnings). You can pull out contributions at any time for any reason without tax or penalty. Earnings are locked until you turn 59½ and have held the account for at least five tax years — with narrow exceptions for disability, death, or first-time home purchase.
The five-year rule applies to each Roth IRA separately if you have multiple accounts, and it starts over if you convert money from a traditional IRA. Understanding which bucket you're withdrawing from matters, because the IRS treats them differently.
Key Takeaways
- Contributions (money you deposited) can be withdrawn anytime without tax or penalty, regardless of your age.
- Earnings can only be withdrawn tax-free if you are 59½ or older and have owned the Roth IRA for at least five tax years.
- Withdrawing earnings before 59½ costs you a 10% penalty plus income tax on the earnings, except in cases of disability, death, or first-time home purchase.
- The IRS assumes you withdraw contributions first, then earnings, so you may be able to take more than you think without penalty.
- Conversions from traditional IRAs have their own five-year rule and are subject to a 10% penalty if withdrawn within five years.
How the IRS tells contributions apart from earnings
When you withdraw from a Roth IRA, the IRS assumes you take out contributions first. This is called the pro-rata ordering rule. If you contributed $5,000 and your account grew to $7,000, the first $5,000 you withdraw is treated as a contribution and comes out tax-free and penalty-free. Only after contributions are exhausted do withdrawals count as earnings.
This matters because it means you can often withdraw more than you think without triggering the earnings penalty. If you need $6,000 and your account holds $7,000 in contributions and $3,000 in earnings, you can take the full $6,000 with no penalty — the first $6,000 counts as contributions under the ordering rule.
Keep records of every contribution you make, including the year. The IRS does not track this for you. If you cannot document what you contributed, you may have to pay tax and penalty on withdrawals you thought were safe.
Withdrawing earnings before age 59½
If you withdraw earnings before you turn 59½, you owe both a 10% penalty and income tax on those earnings — unless an exception applies. A $3,000 earnings withdrawal at age 35 costs you $300 in penalty plus whatever your tax bracket adds on top.
The exceptions are narrow. You can withdraw earnings penalty-free (though still taxed) if you are disabled, if the money goes to a beneficiary after your death, or if you are a first-time homebuyer taking up to $10,000 lifetime. You cannot withdraw earnings penalty-free for medical bills, education, or job loss, even though traditional IRA rules allow those.
The five-year rule still applies even if an exception lets you avoid the penalty. If you opened your Roth IRA three years ago and you are disabled, you can withdraw earnings without the 10% penalty, but you still owe income tax on them.
The five-year rule for contributions and conversions
You must own a Roth IRA for at least five tax years before earnings withdrawals are tax-free and penalty-free. The clock starts on January 1 of the year you open the account, not on the day you fund it. If you opened a Roth IRA on December 31, 2023, your five-year period ends on December 31, 2028.
If you convert money from a traditional IRA to a Roth IRA, that conversion has its own five-year rule. Converted money is treated as earnings for the first five years, and withdrawing it before five years have passed costs you a 10% penalty (though not income tax, since you already paid tax on the conversion). This rule applies even if you have owned a Roth IRA for decades — each conversion restarts the clock for that specific money.
The five-year rule does not go away at age 59½. You must meet both conditions: be 59½ or older AND have owned the account for five years. If you opened a Roth IRA at age 58, you cannot take earnings tax-free and penalty-free until you turn 63, even though you will be over 59½.
Withdrawals after age 59½ with a five-year-old account
Once you turn 59½ and have owned your Roth IRA for at least five tax years, you can withdraw earnings tax-free and penalty-free. There is no required withdrawal amount and no deadline — Roth IRAs do not have required minimum distributions during your lifetime, unlike traditional IRAs.
You can withdraw as much or as little as you want, whenever you want. The money comes out tax-free because you already paid tax on contributions when you earned them, and earnings grow tax-free inside the account. Your beneficiaries inherit the account tax-free as well, though they must empty it within ten years under current rules.
What happens if you withdraw too much or too early
If you withdraw earnings before 59½ and no exception applies, the IRS charges you a 10% penalty on the earnings amount plus income tax at your ordinary rate. You report the withdrawal on Form 8606 when you file your tax return, and the penalty is added to your tax bill.
If you withdraw converted money within five years of the conversion, you owe a 10% penalty on the amount withdrawn. This penalty applies even if you are over 59½, because the five-year rule for conversions is separate from the age rule.
You can undo a withdrawal within 60 days by rolling the money back into the same Roth IRA or another Roth IRA. This is called a rollover. If you miss the 60-day window, the withdrawal is permanent and you cannot get the tax or penalty treatment back.
Frequently Asked Questions
Can I withdraw my contributions without reporting it to the IRS?
Contributions come out tax-free and penalty-free, but you still report the withdrawal on Form 8606 when you file your tax return. The IRS tracks Roth IRA activity through your custodian's reports. Failing to report it does not change the tax treatment, but it can trigger an audit if your numbers do not match what the bank reported.
What if I need money for medical bills or education?
You can withdraw contributions anytime without penalty. If you need to tap earnings, Roth IRAs do not have the medical or education exceptions that traditional IRAs offer. Your only option is to withdraw contributions first, then pay the 10% penalty and income tax on any earnings you take out before 59½.
Do I have to withdraw money at age 72?
No. Roth IRAs do not have required minimum distributions during your lifetime. You can leave the money untouched for as long as you live. Your beneficiaries must withdraw the full balance within ten years of your death, but you are never forced to take money out while you are alive.
Can I roll a withdrawal back into my Roth IRA after 60 days?
No. The 60-day rollover window is firm. If you withdraw money and do not deposit it back into a Roth IRA within 60 days, the withdrawal is final. You cannot undo it later, even if you change your mind or have the cash available.
What if I have multiple Roth IRAs?
The five-year rule applies to each account separately. If you opened one Roth IRA in 2020 and another in 2023, the 2020 account can distribute earnings tax-free at 59½, but the 2023 account cannot until 2028. Contributions can be withdrawn from any account anytime, but conversions are tracked by the account they were converted into.