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 — at any age without penalty or taxes. The earnings those contributions generate are different: you cannot touch them before age 59½ without paying a 10% penalty and income tax, with a few narrow exceptions. The account must also have been open for at least five tax years for any withdrawal to avoid the earnings penalty.

The five-year rule applies to your entire Roth IRA history, not to each deposit. If you opened your first Roth IRA in 2020, the five-year clock started then. Any Roth IRA you open after that counts toward the same five-year period — you do not restart the clock with each new account.

Key Takeaways

  • You can withdraw contributions (the money you deposited) at any time without penalty or tax, regardless of your age.
  • Earnings can only be withdrawn penalty-free after age 59½ and once the account has been open for five tax years.
  • Certain hardships — disability, medical expenses, first-time home purchase, and may have access to education costs — let you withdraw earnings early without the 10% penalty, though you still owe income tax.
  • The five-year rule is tied to when you first opened any Roth IRA, not to individual contributions or new accounts.
  • If you convert a traditional IRA to a Roth, the five-year rule for that conversion money starts fresh from the conversion date.

Withdrawing contributions versus earnings

Your contributions are the dollars you personally deposited into the account. The IRS tracks this amount separately. You can withdraw contributions in full at any time without penalty, taxes, or age restrictions. This is one of the main advantages of a Roth over a traditional IRA.

Earnings are the investment gains — interest, dividends, and capital appreciation — that your contributions generated. These are treated as taxable income if you withdraw them before age 59½. You will owe both a 10% early withdrawal penalty and regular income tax on the amount withdrawn, unless one of the exceptions below applies.

When you request a withdrawal, the IRS assumes you take contributions first. If you withdraw $5,000 and your contributions total $8,000, you are pulling from contributions only and owe nothing. If you withdraw $10,000 and contributions are $8,000, the extra $2,000 counts as earnings and triggers the penalty and tax.

The five-year rule and when it starts

Before you can withdraw earnings without the 10% penalty, your Roth IRA must have been open for at least five tax years. This clock starts on January 1 of the year you opened your first Roth IRA, not on the day you funded it.

If you opened a Roth IRA on December 15, 2020, the five-year period began January 1, 2020. By January 1, 2025, you have satisfied the five-year requirement. If you then open a second Roth IRA in 2025, it does not restart the clock — you are still on the same five-year timeline from 2020.

The five-year rule applies separately to conversions. If you convert a traditional IRA to a Roth in 2024, the five-year clock for that conversion money starts January 1, 2024. You can withdraw the converted amount itself (your contribution to the Roth) anytime, but earnings on that conversion money cannot be touched penalty-free until 2029 and you reach 59½.

Exceptions that let you withdraw earnings early

The IRS allows penalty-free withdrawal of earnings before age 59½ in a few specific situations. You still owe income tax on the earnings, but the 10% penalty is waived. The five-year rule still applies — your account must have been open five tax years.

The main exceptions are: you become permanently disabled; you have unreimbursed medical expenses that exceed 7.5% of your adjusted gross income; you are a first-time homebuyer withdrawing up to $10,000 in your lifetime; or you have may have access to education expenses for yourself or a dependent. may have access to education expenses include tuition, fees, books, and room and board at an accredited school.

A death exception also exists: if the account owner dies, beneficiaries can withdraw earnings without the 10% penalty, though they still owe income tax. The five-year rule does not apply to beneficiaries in this case.

What happens if you withdraw before five years

If your Roth IRA has not been open for five tax years and you withdraw earnings, you owe both the 10% penalty and income tax on the earnings portion. This applies even if you are over 59½. The five-year requirement is separate from the age requirement.

Example: You opened a Roth IRA in 2023 and are now 62 in 2024. You withdraw $5,000 in earnings. Because the account has not been open five tax years, you owe 10% penalty ($500) plus income tax on the $5,000, even though you are past 59½.

The only way around this is if one of the exceptions applies — disability, medical expenses, first-time home purchase, or education costs. If none of those fit your situation, the penalty and tax both apply.

Roth conversions and the pro-rata rule

If you convert money from a traditional IRA to a Roth, the five-year rule applies to that converted amount separately. You can withdraw the conversion contribution itself anytime without penalty. Earnings on the conversion are subject to the five-year rule and the 10% penalty if withdrawn early.

The pro-rata rule complicates this if you have both traditional and Roth IRAs. When you convert, the IRS looks at all your traditional IRAs combined and calculates what portion of the conversion is pre-tax money versus after-tax contributions. That pre-tax portion is treated as taxable income in the year of conversion. If you then withdraw from the Roth before five years, the pro-rata rule determines how much of the withdrawal is treated as earnings versus contribution.

This rule makes conversions complex if you have multiple IRAs. A tax professional can help you understand the tax impact before you convert.

Withdrawals and required minimum distributions

Unlike traditional IRAs, Roth IRAs do not require you to take withdrawals at any age during your lifetime. You can leave the money untouched indefinitely. This is another major advantage for long-term savers.

After you die, beneficiaries must withdraw the account within ten years under current rules, though they can spread withdrawals across that period. Beneficiaries do not owe the 10% penalty on early withdrawals, but they do owe income tax on earnings.

Frequently Asked Questions

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

You do not need to report contributions you withdraw — they were already taxed when you earned them. However, you must report the withdrawal on your tax return if you also withdraw earnings. The IRS tracks Roth IRA activity through your financial institution's reports, so withdrawals are recorded.

What if I need money but do not meet any of the exceptions?

You can always withdraw your contributions penalty-free. If you need earnings and do not meet an exception, you will owe the 10% penalty and income tax. Some people take a loan from their Roth instead, though this is not a formal feature — you would need to close the account, take the money, and reopen it within 60 days to avoid taxes.

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

No. Moving a Roth IRA from one financial institution to another is a trustee-to-trustee transfer and does not restart the five-year clock. The clock is tied to when you first opened any Roth IRA, not to the account's current location.

Can I withdraw earnings to pay for my child's college without penalty?

Yes, if the expenses are may have access to education costs — tuition, fees, books, and room and board at an accredited school. You still owe income tax on the earnings, but the 10% penalty is waived. The five-year rule must be met. Scholarships do not reduce the amount you can withdraw.

What if I am disabled — can I withdraw earnings early without the five-year rule?

If you are permanently disabled, you can withdraw earnings without the 10% penalty even if the five-year rule has not been met. You still owe income tax on the earnings. Disability must be documented and meet the IRS definition of permanent and total disability.