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 — at any age, for any reason, with no penalty and no taxes owed. The earnings those contributions grew into are different. You can withdraw earnings penalty-free only if you are 59½ or older and have held the account for at least five tax years, or if you meet one of a handful of specific hardship exceptions. If you do not meet those conditions, the IRS charges a 10 percent penalty on the earnings plus income tax on them.

The distinction between contributions and earnings is the core rule. The IRS tracks these separately on your account. When you withdraw money, contributions come out first. Once contributions are exhausted, any further withdrawal is treated as earnings and subject to the penalty and tax rules.

Key Takeaways

  • You can withdraw contributions (the money you deposited) from a Roth IRA at any time without penalty or taxes, regardless of your age.
  • Withdrawing earnings before age 59½ triggers a 10 percent penalty plus income tax, unless you meet a specific hardship exception.
  • The five-year rule means you must have opened your Roth IRA at least five tax years before withdrawing earnings, even if you are 59½ or older.
  • Hardship exceptions include disability, medical expenses over 7.5 percent of income, first-time home purchase (up to $10,000 lifetime), and a few others, but they still require the five-year holding period for earnings.
  • Your brokerage or bank reports contributions and earnings separately, so you can ask them which portion of your balance is which before you withdraw.

The difference between contributions and earnings

When you deposit money into a Roth IRA, that deposit is a contribution. If that money grows — through interest, dividends, or investment gains — the growth is earnings. The IRS treats these two parts completely differently for withdrawal purposes.

Example: You open a Roth IRA and deposit $6,500 in January. By December, the account is worth $7,200 because your investments gained $700. The $6,500 is a contribution. The $700 is earnings. You can withdraw the $6,500 anytime without penalty. If you withdraw the $700 before age 59½ and before holding the account five tax years, you owe a 10 percent penalty ($70) plus income tax on that $700.

Your bank or brokerage tracks this split automatically. When you contact them about a withdrawal, you can ask them to tell you how much is contributions and how much is earnings in your current balance. This matters because it determines whether a withdrawal will trigger taxes and penalties.

Withdrawing contributions at any age

Contributions can be withdrawn without penalty or tax at any age. There is no age requirement, no waiting period, and no exception needed. This is one of the main advantages of a Roth IRA over a traditional IRA, where withdrawals before 59½ usually trigger a 10 percent penalty.

You do not need to prove hardship or have a reason. You can withdraw contributions to pay for a vacation, cover a car repair, or any other purpose. The IRS does not care. The only requirement is that you are withdrawing contributions, not earnings.

If you have made multiple contributions over several years, you can withdraw any or all of them. The order does not matter — the IRS assumes contributions come out first when you make a withdrawal.

The five-year rule for earnings

To withdraw earnings without penalty, you must have held your Roth IRA for at least five tax years. This is separate from your age. Even if you are 59½ or older, if you opened the account less than five tax years ago, you cannot withdraw earnings penalty-free.

The five-year period starts on January 1 of the tax year you made your first contribution to any Roth IRA. If you opened an account and contributed in 2024, the five-year period runs through December 31, 2028. Starting January 1, 2029, you can withdraw earnings penalty-free (assuming you also meet the age or hardship requirement).

This rule applies to all your Roth IRAs combined. If you have multiple Roth accounts, they share the same five-year clock. Opening a second Roth IRA does not restart the timer.

Hardship exceptions that avoid the penalty

The IRS allows penalty-free withdrawals of earnings in a few specific situations, even before age 59½. These are called exceptions or may have access to events. However, most of them still require you to have held the account for five tax years. The exceptions are:

  • Disability: You are unable to engage in substantial gainful activity due to a physical or mental condition. The IRS requires medical documentation.
  • Death: Your beneficiary or estate withdraws the money after your death. No penalty applies to anyone.
  • Medical expenses: You withdraw to pay unreimbursed medical expenses that exceed 7.5 percent of your adjusted gross income in that tax year. You must itemize deductions on your tax return.
  • Health insurance premiums: You are unemployed and withdraw to pay health insurance premiums for yourself, your spouse, or dependents. You must have received unemployment benefits for at least 12 consecutive weeks.
  • First-time home purchase: You withdraw up to $10,000 lifetime to buy, build, or rebuild a first home. This is the only exception that does not require the five-year holding period — you can use it after just one tax year if you meet the other conditions.

Even when an exception applies, you still owe income tax on the earnings you withdraw. The exception removes only the 10 percent penalty. If you withdraw $5,000 in earnings under a hardship exception, you owe income tax on that $5,000 at your ordinary tax rate, but no 10 percent penalty.

What happens if you withdraw earnings early without an exception

If you withdraw earnings before age 59½, before the five-year holding period ends, and without a may have access to exception, the IRS charges two things: a 10 percent penalty on the earnings and income tax on the earnings at your ordinary tax rate.

Example: You opened a Roth IRA in 2023 and it now holds $8,000 in contributions and $2,000 in earnings. In 2024, you withdraw $3,000. The first $3,000 comes from contributions (no tax or penalty). If you then withdraw another $1,500 in 2024, that $1,500 is earnings. You owe a 10 percent penalty ($150) plus income tax on $1,500 at your tax bracket — possibly 12 percent, 22 percent, or higher depending on your income. You also report this on Form 5329 when you file your tax return.

The penalty and tax are separate bills. You cannot avoid one by paying the other. Both apply unless you meet an exception or the five-year rule.

Roth conversions and the pro-rata rule

If you have converted money from a traditional IRA to a Roth IRA, the five-year rule applies differently. Converted funds have their own five-year holding period separate from contributions. You can withdraw contributions anytime, but converted amounts are treated as earnings for penalty purposes until five tax years have passed since the conversion.

This matters if you have both regular contributions and conversions in the same Roth IRA. The IRS uses a pro-rata rule to determine what portion of your withdrawal is contributions, what portion is conversions, and what portion is earnings. This calculation can be complex if you have multiple IRAs or multiple conversions. A tax professional or your brokerage can help you figure out the split before you withdraw.

Frequently Asked Questions

Can I withdraw contributions if I have not held the account five years?

Yes. The five-year rule applies only to earnings. Contributions can be withdrawn anytime without penalty or tax, regardless of how long you have owned the account. You can withdraw contributions one month after opening the account if you need to.

What if I do not know how much of my balance is contributions versus earnings?

Contact your bank or brokerage and ask them to break down your account balance into contributions and earnings. They can provide this information in writing. Some online brokerages show this on your account dashboard. Do not guess — ask before you withdraw.

Does the five-year rule reset if I roll over my Roth IRA to a different bank?

No. A rollover (moving money from one Roth IRA to another) does not restart the five-year clock. The clock is tied to when you first contributed to any Roth IRA, not to which institution holds it. If you opened your first Roth in 2020 and rolled it to a new bank in 2023, the five-year period still ends in 2024.

Can I withdraw earnings to pay off credit card debt?

Not without penalty and tax. Credit card debt is not a may have access to hardship exception. You would owe a 10 percent penalty plus income tax on any earnings you withdraw. You can withdraw contributions without penalty, but once those are gone, further withdrawals trigger the penalty.

If I am 59½ but have not held the account five years, can I withdraw earnings?

No. You must meet both conditions: age 59½ or older AND five tax years of holding the account. If you are 59½ but opened the account only three years ago, you still cannot withdraw earnings penalty-free. You can withdraw contributions anytime, but earnings remain locked until the five-year period ends.