You can withdraw your contributions anytime without penalty or taxes
The money you put into a Roth IRA yourself — called your contributions — can come out whenever you want. The IRS does not charge you a penalty, and you do not owe taxes on that money. This is different from the earnings your money made inside the account, which have stricter rules.
The catch is that you need to know how much you actually contributed versus how much your investments earned. Your IRA custodian (the bank or brokerage holding your account) tracks this for you, but you have to ask for the breakdown. When you withdraw, the IRS assumes you are taking out earnings first unless you prove otherwise.
This rule exists because Roth IRAs are meant to be retirement accounts. The government lets you access your own money to prevent hardship, but it protects the growth inside the account from being raided early.
Key Takeaways
- Your contributions can be withdrawn at any time without penalty or income tax, but you must be able to document how much you contributed versus how much you earned.
- If you withdraw earnings before age 59½ and before the account has been open five years, you will owe income tax and a 10% penalty on the earnings portion.
- Your IRA custodian keeps records of contributions, but you should request a statement showing the breakdown before you withdraw.
- Withdrawals are processed by your bank or brokerage, not by the IRS, and usually take three to five business days to reach your account.
How the IRS tracks contributions versus earnings
When you withdraw money from a Roth IRA, the IRS uses a formula called the pro-rata rule to figure out what portion is contributions and what portion is earnings. If you have multiple Roth IRAs, the IRS treats them as one account for this calculation — you cannot pick and choose which account to withdraw from to avoid taxes.
The formula works like this: divide your total contributions across all Roth IRAs by your total Roth IRA balance (contributions plus earnings). That percentage applies to every withdrawal you make that year. If you have $10,000 in contributions and $2,000 in earnings across all your Roth accounts, then 83% of any withdrawal is treated as a contribution (tax-free) and 17% is treated as earnings (potentially taxable).
Your IRA custodian will report the withdrawal to the IRS on Form 5498-R, which shows the total amount withdrawn. You are responsible for tracking whether that withdrawal was contributions or earnings. Keep your own records of how much you put in each year, because the IRS may ask you to prove it.
What happens if you withdraw earnings before retirement
If part of your withdrawal is earnings and you are under 59½, you will owe income tax on the earnings portion. You will also owe a 10% early withdrawal penalty on that earnings portion — unless an exception applies.
The five-year rule adds another layer: your Roth IRA must have been open for at least five tax years before you can withdraw earnings tax-free, even at age 59½. The clock starts on January 1 of the year you opened your first Roth IRA, not on the day you opened it. If you opened a Roth IRA on December 31, 2023, the five-year period ends on January 1, 2028.
Some situations let you withdraw earnings without the 10% penalty, even before 59½. These include disability, medical expenses over 7.5% of your income, health insurance premiums while unemployed, and a first-time home purchase (up to $10,000 lifetime). You still owe income tax on the earnings in these cases, but not the penalty.
How to request a contribution withdrawal
Contact your IRA custodian — the bank, brokerage, or investment company holding your account — and ask to withdraw a specific dollar amount. Most custodians let you request a withdrawal online, by phone, or by mail. The process usually takes three to five business days for the money to reach your bank account.
Before you request the withdrawal, ask your custodian for a statement showing your total contributions and total earnings as of that date. Write down the numbers. When you request the withdrawal, specify that you are withdrawing contributions only and provide the dollar amount of your contributions. This creates a paper trail if the IRS ever questions the withdrawal.
Some custodians will ask you to sign a form stating that you understand the tax consequences. Read it carefully — it should say that you are withdrawing contributions, not earnings. If the form does not give you that option, ask the custodian to note in writing that you requested a contribution-only withdrawal.
Withdrawals and your contribution limit for the year
Withdrawing your contributions does not change how much you can contribute going forward. Your annual contribution limit is based on your income and age, not on your account balance. If you withdraw $5,000 in contributions and you are under 50, you can still contribute up to $7,000 for that tax year (the 2024 limit; this amount changes yearly).
However, if you withdraw earnings and that triggers a taxable event, you cannot put that money back into the Roth IRA in the same year without exceeding your contribution limit. For example, if you withdraw $7,000 (which includes $1,000 in taxable earnings) and you want to redeposit it, you can only put back $6,000 without going over your limit for the year.
State taxes and special situations
Roth IRA withdrawals are not subject to federal income tax on contributions, but some states tax retirement account withdrawals. Check your state's tax rules before you withdraw. A few states (like Pennsylvania and Illinois) do not tax retirement income at all, while others tax withdrawals like regular income.
If you are receiving means-tested benefits like Supplemental Security Income (SSI) or Medicaid, a Roth IRA withdrawal may count as income and reduce your benefits. The rules vary by program and state. Contact your benefits administrator before withdrawing to understand how it will affect you.
Frequently Asked Questions
Can I withdraw contributions if I have not reached age 59½?
Yes. Your contributions can be withdrawn at any age without penalty or tax. Only earnings have age restrictions. You must be able to show the IRS that you withdrew contributions, not earnings, so keep records of how much you put in.
What if I do not know how much I contributed?
Contact your IRA custodian and request a contribution history. They are required to provide this information. If you opened the account years ago and cannot reach the original custodian, the IRS can help you reconstruct your records, but it is easier to ask your current custodian first.
Do I have to report a contribution withdrawal to the IRS?
Your custodian reports the total withdrawal on Form 5498-R. You report it on your tax return only if part of it is earnings subject to tax. If you withdrew only contributions, you do not owe tax, but keep your documentation in case the IRS asks.
Can I put the money back after I withdraw it?
Yes, but only within 60 days and only once per year. This is called a rollover. If you miss the 60-day window, it counts as a permanent withdrawal and you cannot redeposit it without exceeding your annual contribution limit.
What if I need to withdraw more than my contributions?
You can withdraw earnings, but you will owe income tax on them and possibly a 10% penalty if you are under 59½ and the account has not been open five years. Some exceptions (disability, first-time home purchase, medical expenses) waive the penalty but not the tax.