You can withdraw your contributions anytime, but earnings have strict rules

A Roth IRA lets you pull out the money you put in — your contributions — whenever you want, with no penalty and no taxes owed. The earnings those contributions generated are different: you cannot touch them before age 59½ without paying a 10% penalty and income tax on what you withdraw, with a few narrow exceptions.

The IRS treats contributions and earnings as separate buckets. When you withdraw, the IRS assumes you take contributions first. This matters because it changes what you actually owe. If you have $50,000 in the account and $30,000 of that is your own money you put in, you can pull out $30,000 with no consequences. The other $20,000 is off-limits until you hit 59½, unless one of the exceptions applies.

Key Takeaways

  • You can withdraw your own contributions to a Roth IRA at any age with no penalty or tax, because you already paid tax on that money when you earned it.
  • Earnings in the account are locked until age 59½ unless you meet an exception like a first-time home purchase, disability, or medical hardship.
  • The IRS assumes you withdraw contributions before earnings, so knowing how much you put in versus how much the account has grown tells you what you can safely take out.
  • If you convert money from a traditional IRA to a Roth, the conversion amount has its own five-year waiting period before you can withdraw it penalty-free.
  • Taking earnings out early triggers both a 10% penalty and income tax on the amount withdrawn, unless an exception applies.

Withdrawing contributions versus earnings

The IRS keeps a record of how much you have contributed to all your Roth IRAs combined across your lifetime. You can find this on your tax returns — Form 8606 shows your Roth contributions and conversions. Add up every year you put money in, and that total is what you can withdraw without penalty at any time.

Earnings are the growth: interest, dividends, and investment gains. If you put in $6,000 a year for five years and the account grew to $35,000, you contributed $30,000 and earned $5,000. You can pull out the $30,000 anytime. The $5,000 stays locked until 59½ or until an exception kicks in.

When you request a withdrawal, the IRS applies what is called the pro-rata rule. If you withdraw $10,000 and your account is 70% contributions and 30% earnings, the $10,000 counts as 70% contributions ($7,000) and 30% earnings ($3,000). Only the $3,000 portion triggers the penalty and tax.

Exceptions that let you withdraw earnings early

The IRS allows penalty-free withdrawal of earnings in these situations:

  • First-time home purchase: Up to $10,000 lifetime. You must not have owned a home in the past two years. The money must go toward buying, building, or rebuilding a home.
  • Disability: You are unable to work due to a physical or mental condition that is expected to last indefinitely or result in death.
  • Medical expenses: Unreimbursed medical costs that exceed 7.5% of your adjusted gross income for the year.
  • Health insurance premiums: If you are unemployed and paying premiums yourself, you can withdraw earnings to cover them.
  • Substantially equal periodic payments (SEPP): You set up a schedule of equal withdrawals based on your life expectancy. Once started, you must continue for five years or until age 59½, whichever is longer.
  • IRS levy: The IRS has seized your account to pay back taxes.

These exceptions waive the 10% penalty but do not waive income tax. You still owe tax on the earnings you withdraw. The exception only protects you from the extra 10% penalty on top of the tax you already owe.

Conversions and the five-year rule

If you convert money from a traditional IRA or 401(k) to a Roth, that converted amount sits under a separate five-year clock. You cannot withdraw the conversion without penalty until five years have passed, even though it is now in a Roth account.

The five-year period starts on January 1 of the year you do the conversion. If you convert in March 2024, the five-year window closes on January 1, 2029. After that date, you can withdraw the conversion amount penalty-free (though you still owe income tax on any earnings that grew on top of the conversion).

This rule applies to each conversion separately. If you convert $10,000 in 2024 and another $10,000 in 2025, each conversion has its own five-year clock. The 2024 conversion is available in 2029; the 2025 conversion is available in 2030.

What happens if you withdraw earnings early without an exception

If you take out earnings before 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% early withdrawal penalty on top of that.

Example: You withdraw $5,000 in earnings at age 45. Your tax bracket is 22%. You owe $1,100 in income tax (22% of $5,000) plus $500 in penalty (10% of $5,000), for a total of $1,600. The IRS withholds this from your withdrawal or you pay it when you file your return.

The penalty is reported on Form 5329, which you file with your tax return. If you think you may have access to for an exception, you can request a waiver on Form 5329 when you file, but the burden is on you to prove the exception applied.

Inherited Roth IRAs and withdrawal rules

If you inherit a Roth IRA from someone other than your spouse, the withdrawal rules change. You must begin taking distributions, but the amount and timing depend on when the original owner died and whether they had already started taking required distributions.

Generally, non-spouse beneficiaries must empty the account within 10 years of the owner's death. The earnings in an inherited Roth are still subject to the 10% penalty if withdrawn before the owner would have turned 59½, unless the owner had already reached that age.

If your spouse inherits your Roth, they can treat it as their own and follow the normal rules, or they can keep it as an inherited account. Spouse beneficiaries have more flexibility than other heirs.

Frequently Asked Questions

Can I withdraw my contributions if I have not had the account for five years?

Yes. The five-year rule applies only to conversions and to earnings. Your contributions can come out anytime, regardless of how long you have owned the account. You already paid income tax on that money when you earned it, so the IRS does not tax it again.

What if I do not know how much I contributed?

Check your tax returns. Form 8606 shows your Roth contributions for each year. Add them up across all years and all Roth accounts you own. Your brokerage or bank also has a record of contributions on your account statements. Contact them if you cannot find your old tax forms.

Does the five-year rule reset if I open a new Roth IRA?

No. The five-year rule is based on when you first opened any Roth IRA, not on individual accounts. If you opened your first Roth in 2020, the five-year window closes in 2025 for all your Roth accounts, even if you opened a second one in 2023.

Can I withdraw earnings to pay for college?

Not without penalty. College expenses are not one of the IRS exceptions for early withdrawal of earnings. You can withdraw your contributions for any reason, but earnings stay locked until 59½ or another exception applies. A 529 plan or education IRA (Coverdell ESA) are better choices for education savings.

What if I take out earnings by mistake and do not realize it until tax time?

You can redeposit the money back into the Roth within 60 days and avoid the penalty and tax. This is called a rollover. You must put back the full amount you withdrew, including any earnings that were paid out. If you miss the 60-day window, you owe the penalty and tax on the earnings portion.