You can withdraw your 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 (investment gains). You can withdraw the contributions you made anytime, at any age, with no penalty and no taxes owed. Earnings are locked until age 59½ in most cases — withdraw them earlier and you pay income tax plus a 10 percent penalty on the earnings portion only.

The distinction matters because many people fund a Roth IRA specifically to access their contributions before retirement. If you put in $6,000 a year for five years, you can pull out that $30,000 at age 35 with zero consequences. The $5,000 in gains that account earned stays subject to the early withdrawal rules.

Key Takeaways

  • Contributions (money you deposited) can be withdrawn at any age without tax or penalty, but you must have held the account for at least five tax years to avoid taxes on earnings.
  • Earnings cannot be withdrawn before age 59½ without owing income tax plus a 10 percent penalty, with limited exceptions for first-time home purchase, disability, or medical hardship.
  • The five-year rule applies per account: if you open a new Roth IRA at age 50, you still cannot withdraw earnings tax-free until age 55.
  • Conversions from a traditional IRA to a Roth IRA have their own five-year holding period separate from contributions.

Contributions versus earnings: which rule applies to your withdrawal

The IRS tracks your Roth IRA in layers. The bottom layer is your contributions — the actual dollars you deposited from your paycheck or tax refund. Above that sits the earnings — interest, dividends, and investment gains. When you withdraw, the IRS assumes you take contributions first, then earnings.

This order protects you. If you contributed $50,000 over ten years and your account grew to $75,000, you can withdraw $50,000 anytime without tax or penalty. The $25,000 in earnings stays in the account and remains subject to the early withdrawal rules. You do not choose which layer to pull from — the IRS does it for you, in that order.

The one exception is if you have made conversions from a traditional IRA to a Roth IRA. Conversions are treated as a separate layer and have their own five-year holding period. If you converted $20,000 at age 50, you cannot withdraw that converted amount without penalty until age 55, even though it is technically a contribution to the Roth.

The five-year rule: when you can withdraw earnings tax-free

Even if you reach age 59½, you cannot withdraw earnings tax-free unless your Roth IRA account has been open for at least five tax years. The clock starts on January 1 of the year you opened the account, not the day you funded it. If you opened a Roth IRA on December 15, 2024, and funded it on December 20, 2024, the five-year period began on January 1, 2024.

This rule is per account. If you open a Roth IRA at age 50, you must wait until age 55 to withdraw earnings tax-free, even if you had a different Roth IRA years earlier. However, if you inherit a Roth IRA, the five-year rule is based on when the original owner opened their account, not when you inherited it.

Once you turn 59½ and the five-year period has passed, you can withdraw earnings without tax or penalty. At that point, the account is fully accessible — contributions and earnings both come out tax-free.

Exceptions: early withdrawal without the 10 percent penalty

The IRS allows penalty-free withdrawals of earnings before age 59½ in specific situations. You still owe income tax on the earnings, but the 10 percent penalty is waived. The main exceptions are:

  • First-time home purchase: Up to $10,000 lifetime from earnings, if you have not owned a home in the past two years.
  • Disability: Full withdrawal of earnings if you become disabled as defined by Social Security.
  • Medical expenses: Earnings withdrawn to cover unreimbursed medical costs that exceed 7.5 percent of your adjusted gross income.
  • Health insurance premiums: Earnings used to pay premiums while you are unemployed.
  • Substantially equal periodic payments: A series of equal withdrawals calculated using IRS formulas, available at any age.

These exceptions require documentation. For a first-time home purchase, you must show the purchase agreement or closing statement. For disability, you need a letter from Social Security or the IRS. For medical expenses, you need receipts and proof that the costs were not reimbursed. The burden is on you to prove the exception applies.

What happens if you withdraw earnings before age 59½ without an exception

If you withdraw earnings before age 59½ and do not may have access to for an exception, you owe two things: income tax on the earnings at your regular tax rate, plus a 10 percent penalty on the earnings only. The contributions come out tax-free and penalty-free as always.

Example: You withdraw $15,000 from a Roth IRA at age 45. Your contributions total $10,000 and earnings total $8,000. The $10,000 in contributions comes out with no tax or penalty. The $5,000 in earnings (the amount over your $10,000 contribution) is taxed as income and hit with a 10 percent penalty. If you are in the 22 percent tax bracket, you owe $1,100 in tax plus $500 in penalty — $1,600 total on that $5,000.

The penalty is reported on Form 5329 when you file your tax return. You cannot avoid it by not reporting the withdrawal; the financial institution sends the IRS a record of the distribution.

Roth conversions and the pro-rata rule

If you converted money from a traditional IRA to a Roth IRA, that converted amount has its own five-year holding period. You can withdraw the converted amount after five years without penalty, but before five years you pay the 10 percent penalty on the earnings portion of the conversion.

The pro-rata rule complicates this if you have both a traditional IRA and a Roth IRA. When you convert, the IRS treats all your traditional IRAs as one pool for tax purposes. If you have $50,000 in a traditional IRA and convert $10,000 to a Roth, the IRS calculates what percentage of that $10,000 is pre-tax money and what percentage is after-tax contributions. You pay tax on the pre-tax portion in the year of conversion, and that portion is subject to the five-year rule.

This rule catches many people off guard. If you want to convert a traditional IRA to a Roth and withdraw the converted amount within five years, consult a tax professional first — the pro-rata rule can create unexpected tax bills.

Required minimum distributions do not apply to Roth IRAs during your lifetime

Traditional IRAs require you to start taking money out at age 73 (as of 2023; this age increases over time). Roth IRAs have no such requirement while you are alive. You can leave the money untouched for your entire life and pass it to heirs. This is one major advantage of a Roth over a traditional IRA.

Your heirs will face different rules. Non-spouse beneficiaries must withdraw the entire inherited Roth IRA within ten years, though they can spread withdrawals across those years. Spouse beneficiaries can treat the inherited Roth as their own or take distributions over their lifetime.

Frequently Asked Questions

Can I withdraw my contributions before age 59½?

Yes. Contributions can be withdrawn at any age without tax or penalty. You do not need a reason or an exception. The only requirement is that your Roth IRA account has been open for at least five tax years if you also want to withdraw earnings tax-free, but contributions themselves are always accessible.

What if I need money before age 59½ but I only have earnings in my account?

You can withdraw the earnings, but you will owe income tax on them plus a 10 percent penalty unless you may have access to for an exception. First-time home purchase (up to $10,000), disability, medical hardship, and a few other situations waive the penalty but not the tax. Check whether your situation qualifies before withdrawing.

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

No. The five-year clock is based on when you first opened any Roth IRA, not when you move the money between providers. If you opened a Roth in 2020 and moved it to a different bank in 2024, the five-year period still ends in 2025.

What if I converted a traditional IRA to a Roth — can I withdraw that converted money right away?

You can withdraw the converted amount after five years without penalty. Before five years, you pay a 10 percent penalty on the earnings portion of the conversion, though you already paid income tax on the conversion in the year it happened. The pro-rata rule may apply if you have other traditional IRAs.

Do I have to report Roth IRA withdrawals on my tax return?

Withdrawals of contributions do not need to be reported. Withdrawals of earnings are reported on Form 1040 and Form 8606. The financial institution sends you a Form 1099-R showing the distribution amount, and you use Form 8606 to calculate how much is taxable.