The basic rule: contributions anytime, earnings only at 59½

You can withdraw the money you put into a Roth IRA at any time without penalty or taxes. The IRS calls this your contribution basis. If you deposited $5,000 last year and $6,000 this year, you can pull out that $11,000 whenever you need it.

The earnings your money made — the investment gains — follow a different rule. You cannot withdraw earnings penalty-free until you turn 59½ and have held the account for at least five tax years. If you withdraw earnings before then, you pay a 10% early withdrawal penalty plus income tax on the amount you take out.

The five-year rule is per account, not per person. If you open a new Roth IRA, the five-year clock starts over for that specific account, even if you already have another Roth IRA that has been open longer.

Key Takeaways

  • You can withdraw your contributions (the money you deposited) from a Roth IRA at any time without penalty or tax.
  • Withdrawing earnings before age 59½ costs you a 10% penalty plus income tax, unless you meet a specific exception.
  • The five-year holding period for earnings starts when you first open any Roth IRA, not when you make each deposit.
  • First-time homebuyers, people with disabilities, and those facing medical hardship have exceptions that let them withdraw earnings early without the 10% penalty.
  • The IRS assumes you withdraw contributions first, so you generally do not pay penalty or tax until your contributions run out.

Exceptions that waive the 10% early withdrawal penalty

The IRS allows you to withdraw earnings without the 10% penalty in specific situations, though you still owe income tax on the earnings themselves. The most common exceptions are: you are disabled, you have a may have access to medical expense, you are a first-time homebuyer, or you are taking distributions to pay for education.

First-time homebuyers can withdraw up to $10,000 of earnings (lifetime limit) to buy, build, or rebuild a home. You must not have owned a home in the past two years. The $10,000 limit applies to you as an individual, not per account or per purchase.

may have access to medical expenses include unreimbursed costs that exceed 7.5% of your adjusted gross income. Education expenses cover tuition, fees, books, and room and board for you, your spouse, or your children at an accredited school. You still owe income tax on the earnings you withdraw for these reasons — the penalty is waived, but the tax is not.

If you are permanently disabled or face a medical hardship, you can withdraw earnings without the 10% penalty. Disability is defined narrowly by the IRS: you must be unable to work because of a physical or mental condition that is expected to last at least 12 months or result in death. Medical hardship typically means you cannot pay for necessary medical care any other way.

How the IRS treats mixed withdrawals

When you take money out of a Roth IRA, the IRS assumes you withdraw your contributions first, then earnings. This matters because it means you can usually pull out money without triggering the penalty, as long as you have not withdrawn more than you contributed.

The IRS tracks this using the pro-rata rule if you have multiple Roth IRAs or have converted money from a traditional IRA to a Roth. The rule treats all your Roth accounts as one pool for withdrawal purposes. If you have $30,000 in contributions and $10,000 in earnings across all your Roth accounts, and you withdraw $20,000, the IRS calculates that 75% of your withdrawal is contributions (tax-free) and 25% is earnings (subject to tax and penalty if you do not meet an exception).

Keep records of every contribution you make and every conversion you do. The IRS Form 8606 tracks this information. If you cannot prove how much you contributed, the IRS will assume more of your withdrawal is earnings, which costs you in taxes and penalties.

Roth conversions and the five-year rule

If you convert money from a traditional IRA or 401(k) to a Roth IRA, that converted amount follows its own five-year rule. You can withdraw the amount you converted without penalty after five tax years, even if you have not reached 59½. However, any earnings on that converted money still cannot be withdrawn penalty-free until you turn 59½ and meet the five-year requirement.

Each conversion starts its own five-year clock. If you convert $10,000 in 2024 and another $10,000 in 2025, the first conversion can be withdrawn penalty-free starting in 2029, and the second in 2030. This rule applies even if you convert from the same source account.

What happens if you withdraw before the five-year period ends

If you withdraw earnings before five tax years have passed since you opened your Roth IRA, you owe both a 10% penalty and income tax on the earnings, unless you meet an exception. The penalty is calculated on the earnings amount only, not on your contributions.

The five-year period is measured in tax years, not calendar years. If you open a Roth IRA on December 1, 2024, the five-year period runs through the end of the 2028 tax year (December 31, 2028). You can withdraw earnings penalty-free starting January 1, 2029.

If you close your Roth IRA and reopen it later, the five-year clock does not reset. The IRS looks at when you first opened any Roth IRA, not when you opened your current one.

Required minimum distributions do not apply to Roth IRAs

Unlike traditional IRAs, Roth IRAs do not require you to take money out at any age. You can leave your money in the account for your entire life and pass it to your heirs. This is one of the main reasons people choose Roth accounts — you have complete control over when and how much you withdraw.

Your beneficiaries do have to take distributions from an inherited Roth IRA, but they have options for how fast. The rules depend on whether the person who died was your spouse, a family member, or someone else, and when they died. A financial institution holding the inherited account can explain the specific timeline.

Frequently Asked Questions

Can I withdraw my contributions without any paperwork?

You can withdraw contributions, but you should notify your financial institution in writing or through their online platform. Keep a record of the withdrawal and the date. The IRS does not require you to file special forms for contribution withdrawals, but you need documentation in case the IRS questions the withdrawal later.

What if I do not know how much I contributed?

Contact the financial institution holding your Roth IRA. They maintain records of all deposits and conversions. You can also review your own records — bank statements, brokerage statements, and IRS Form 8606 (if you did conversions). If you cannot find the records, the IRS will assume more of your withdrawal is earnings, which triggers tax and penalty.

Do I owe taxes on contributions I withdraw?

No. Contributions are money you already paid taxes on (or that came from after-tax sources). Withdrawing them does not create a new tax bill. You only owe tax on the earnings portion of your withdrawal, and only if you do not meet an exception or the five-year requirement.

Can I put the money back if I change my mind?

Yes, but only within 60 days. This is called a rollover. You withdraw the money and deposit it back into a Roth IRA (yours or another one) within 60 days. You can do this once per 12-month period across all your IRAs. If you miss the 60-day window, the withdrawal is permanent and counts as a distribution.

What if I need money for an emergency but do not meet an exception?

You can withdraw your contributions without penalty. If you have already withdrawn all your contributions and need more, you can withdraw earnings, but you will owe the 10% penalty and income tax. Some people take a loan from their 401(k) instead if one is available, since loans do not trigger penalties. Others use a home equity line of credit or other borrowing options before tapping earnings in a Roth.