You can withdraw contributions at any age without penalty, but earnings have strict rules

A Roth IRA has two separate withdrawal rules depending on whether you are taking out money you put in (contributions) or money the account earned (earnings). You can withdraw the money you contributed whenever you want, at any age, with no penalty and no taxes owed. Earnings are different — they are locked until you turn 59½, with rare exceptions. The account itself must have been open for at least five years before you can withdraw earnings tax-free, even after you reach 59½.

This five-year rule applies to your first Roth IRA only. If you open a second Roth IRA later, that account has its own separate five-year clock. The rule is about the account's age, not your age.

Key Takeaways

  • You can withdraw money you contributed to a Roth IRA at any age with no penalty or taxes, as long as you take only what you put in.
  • Earnings cannot be withdrawn tax-free until you turn 59½ and your account has been open for at least five years.
  • Withdrawing earnings before 59½ triggers a 10 percent penalty plus income tax on the earnings, with limited exceptions.
  • The five-year rule is tied to when you opened the account, not when you turned a certain age.
  • If you inherit a Roth IRA, different rules apply and you should contact the account custodian for your specific situation.

How contributions and earnings are tracked separately

When you put money into a Roth IRA, that money is your contribution. When the account grows through interest, dividends, or investment gains, that growth is your earnings. The IRS tracks these two buckets separately, and the withdrawal rules treat them completely differently.

Your custodian — the bank, brokerage, or financial institution holding your account — keeps a record of how much you have contributed over time. When you request a withdrawal, the custodian can tell you exactly how much of your balance is contributions and how much is earnings. You can withdraw your contributions anytime. Earnings are what the IRS restricts.

If you have made contributions to a Roth IRA for multiple years, you can withdraw from the total pool of contributions you have made across all those years. You do not have to track individual years yourself; the custodian handles this.

Withdrawing earnings before age 59½: penalties and exceptions

If you try to withdraw earnings before you turn 59½, the IRS charges a 10 percent penalty on the earnings you withdraw, plus you owe income tax on those earnings at your regular tax rate. This makes early withdrawal of earnings expensive and is why the rule exists — the account is designed to grow untouched until retirement.

There are a few narrow exceptions where you can withdraw earnings before 59½ without the 10 percent penalty. These include a first-time home purchase (up to $10,000 lifetime), certain medical expenses, disability, or a series of equal payments over your lifetime. Even with these exceptions, you still owe income tax on the earnings. The penalty is waived, but the tax is not. You should speak with a tax professional before using an exception, because the rules are detailed and mistakes are costly.

The most common exception is the first-time home purchase. You can withdraw up to $10,000 of earnings (lifetime total, not per year) to buy or build your first home. You must use the money within 120 days of withdrawal. This exception applies only once in your lifetime.

The five-year rule and when it starts

Even if you turn 59½, you cannot withdraw earnings tax-free unless your Roth IRA has been open for at least five years. The five-year period starts on January 1 of the year you made your first contribution to that account. If you opened your Roth IRA on December 15, 2023, and made a contribution, the five-year clock started on January 1, 2023. You could withdraw earnings tax-free starting January 1, 2028, assuming you are also 59½ by then.

If you turned 59½ in 2027 but your account is only four years old, you still cannot withdraw earnings tax-free. You have to wait until the account reaches five years old. The age rule and the five-year rule must both be satisfied.

If you have multiple Roth IRAs, each one has its own five-year clock. If you opened your first Roth IRA in 2020 and your second in 2024, the first account's five-year period ended in 2025, but the second account's does not end until 2029. You can withdraw earnings from the older account but not the newer one, even though they are in your name.

Roth conversions and the pro-rata rule

If you converted money from a traditional IRA to a Roth IRA, that converted money follows different timing rules. Converted money is treated as earnings for withdrawal purposes, not contributions. You cannot withdraw converted money without penalty until you turn 59½ and your Roth IRA has been open for five years from the year of the conversion.

There is also a pro-rata rule that applies if you have both a traditional IRA and a Roth IRA. When you convert, the IRS looks at all your traditional IRAs combined and calculates what percentage of the total is pre-tax money versus after-tax money. This affects how much of the conversion is taxable. The rule is complex, and most people benefit from consulting a tax professional before converting.

Inherited Roth IRAs and different withdrawal rules

If you inherit a Roth IRA from someone else, you are subject to different rules than the original owner. The rules depend on whether you inherited from a spouse, a family member, or a non-family member, and whether the original owner had already started withdrawing. You may be required to withdraw the entire account within a certain timeframe, or you may have more flexibility.

Contact the custodian of the inherited account immediately. They can explain your specific options based on who left you the account and when. Do not make withdrawals without understanding the rules first, because mistakes can trigger unexpected taxes and penalties.

Frequently Asked Questions

Can I withdraw my contributions without reporting it to the IRS?

Yes. Withdrawals of contributions are not reported as income and do not trigger any tax filing requirement. Your custodian may send you a form for record-keeping, but the IRS does not tax contribution withdrawals. Keep your own records of how much you contributed over time in case you need to prove it.

What happens if I withdraw earnings by mistake before 59½?

You owe the 10 percent penalty plus income tax on the earnings. You can request a redeposit within 60 days to undo the withdrawal and avoid the penalty, but you must act quickly. Contact your custodian immediately if this happens. If you miss the 60-day window, you cannot undo it and must pay the tax and penalty when you file your return.

Does the five-year rule reset if I close my Roth IRA and open a new one?

Yes. If you close your Roth IRA and later open a new one, the new account starts its own five-year clock. This is one reason to keep your first Roth IRA open even if you are not adding money to it — the five-year period keeps running. Closing and reopening resets the clock and delays when you can withdraw earnings tax-free.

Can I withdraw earnings to pay for college or medical school?

Only if you may have access to for one of the narrow exceptions. College tuition is not an exception, but certain medical expenses are. Disability and first-time home purchase are exceptions. If your situation does not fit an exception, you can withdraw contributions (not earnings) at any time. Speak with a tax professional about your specific circumstances.