You can pull contributions out anytime, but earnings have strict rules

You can withdraw the money you personally contributed to a Roth IRA at any time, tax-free and penalty-free. The earnings those contributions generated are a different story — you generally cannot touch them before age 59½ without paying income tax and a 10% penalty, with a few narrow exceptions.

The distinction matters because your Roth account holds both your contributions and the investment gains. The IRS tracks these separately. When you withdraw, contributions come out first, so you can access your own money without consequence. Once contributions are exhausted, any withdrawal hits earnings and triggers the penalty unless you meet a specific exception.

Key Takeaways

  • Contributions you made yourself can be withdrawn at any time without tax or penalty, regardless of your age or how long the account has been open.
  • Earnings on your contributions cannot be withdrawn before age 59½ without owing income tax and a 10% early withdrawal penalty, with limited exceptions.
  • The five-year rule requires your Roth to be open for five tax years before you can withdraw earnings tax-free, even after age 59½.
  • Exceptions to the early withdrawal penalty include first-time home purchase (up to $10,000 lifetime), disability, medical expenses, and birth or adoption costs.
  • You must track your contribution history yourself — the IRS does not send statements showing how much you contributed versus how much you earned.

How the IRS separates contributions from earnings

When you put money into a Roth IRA, that deposit is your contribution. Any interest, dividends, or capital gains your investments generate inside the account are earnings. The IRS treats these two buckets completely differently for withdrawal purposes.

Your brokerage or bank will show you the total account balance, but that single number hides the split. A $50,000 Roth balance might contain $30,000 in contributions you made and $20,000 in earnings. You need to know which is which, because pulling out $50,000 means you are pulling $30,000 of your own money (allowed) plus $20,000 of earnings (subject to tax and penalty if you are under 59½).

The IRS uses a pro-rata rule if you have multiple IRAs. If you own a Roth IRA and a traditional IRA, the agency treats them as one pool for withdrawal purposes. This can create unexpected tax bills if you are trying to withdraw only from one account. Keep Roth and traditional IRAs completely separate if you plan to withdraw early.

The five-year rule and when it applies

Even if you are age 59½ or older, you cannot withdraw earnings tax-free unless your Roth has been open for at least five tax years. This is the five-year holding period, and it is separate from your age.

The clock starts on January 1 of the year you opened the account, not on the day you funded it. If you opened a Roth on December 31, 2024, the five-year period ends on January 1, 2029. If you opened one on January 1, 2024, it ends on January 1, 2029 as well — the IRS counts by tax year, not by calendar days.

This rule applies to earnings only. Your contributions remain accessible at any time, regardless of how long the account has existed. The five-year rule also does not apply if you are withdrawing due to disability or death — those exceptions bypass the holding period requirement.

Exceptions that let you withdraw earnings early

The IRS allows penalty-free (but not tax-free) withdrawal of earnings before age 59½ in these situations: you are disabled, you are withdrawing for medical expenses that exceed 7.5% of your adjusted gross income, you are paying health insurance premiums while unemployed, or you are a reservist called to active duty.

You can also withdraw up to $10,000 in earnings penalty-free (though you still owe income tax) for a first-time home purchase. "First-time" means you have not owned a home in the past two years — you do not have to be a first-time buyer overall. This $10,000 is a lifetime limit across all your IRAs combined.

Birth and adoption expenses allow penalty-free withdrawal of up to $35,000 per person per year (up to $70,000 per couple) starting in 2024, though this provision was set to expire and Congress has extended it multiple times. Check the current tax year rules before relying on this exception.

All of these exceptions still require that your Roth has been open for five tax years if you want to avoid income tax on the earnings portion. The penalty goes away, but the tax remains unless the five-year rule is satisfied.

What happens if you withdraw earnings before 59½ without an exception

You owe income tax on the earnings at your ordinary tax rate, plus a 10% early withdrawal penalty. If you are in the 22% tax bracket and withdraw $10,000 in earnings early, you owe $2,200 in income tax plus $1,000 in penalty — a total of $3,200 in federal tax alone, before any state tax.

The penalty is calculated on the earnings amount, not the total withdrawal. If you withdraw $30,000 (your contributions) plus $10,000 (earnings), the penalty applies only to the $10,000 in earnings.

The IRS does not withhold this tax automatically. You will owe it when you file your return, or you can ask your brokerage to withhold a percentage at the time of withdrawal. Many people are surprised by the tax bill months later because they did not plan for it.

How to track your contributions for withdrawal purposes

You are responsible for keeping records of how much you have contributed to your Roth over the years. The IRS does not send you a statement breaking down contributions versus earnings. Your brokerage shows your total balance, but not the split.

File Form 8606 with your tax return every year you contribute to a Roth IRA. This form documents your contribution for that tax year. Keep copies of all your Forms 8606 going back to when you opened the account. When you withdraw, add up all the contributions you documented on those forms to know how much you can pull out penalty-free.

If you inherited a Roth IRA from someone else, different rules apply and you do not inherit their contribution history. Treat the inherited Roth as a separate account and consult a tax professional about withdrawal rules for inherited accounts.

Roth conversions and the pro-rata rule

If you converted money from a traditional IRA to a Roth IRA, that converted amount is treated as a contribution for withdrawal purposes — but only after five tax years have passed. During the first five years after a conversion, you can withdraw the converted amount penalty-free but not tax-free (you already paid tax when you converted).

Conversions complicate the pro-rata rule significantly. If you have a traditional IRA with pre-tax money and you convert part of it to a Roth, the IRS treats all your IRAs as one pool. You cannot cherry-pick which money to convert. This can create unexpected tax bills in conversion years. Work with a tax professional if you are planning a conversion.

Frequently Asked Questions

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

You do not need to report a withdrawal of contributions to the IRS because you already paid tax on that money when you earned it. However, you must be able to prove to the IRS that the withdrawal was contributions only, not earnings. Keep your Form 8606 records and your brokerage statements to document this if you are ever audited.

What if I do not know how much I contributed?

Contact your brokerage and ask for a statement showing your contribution history. If you opened the account years ago and lost records, the brokerage may have archived statements. You can also reconstruct your contributions by reviewing old tax returns where you reported Roth contributions. If you still cannot determine the amount, consult a tax professional before withdrawing.

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

No. The five-year rule applies to your first Roth IRA opening date, not to each individual account. If you opened your first Roth in 2020 and opened a second Roth in 2024, both accounts satisfy the five-year rule on January 1, 2025. The clock does not restart for the second account.

Can I borrow from my Roth IRA instead of withdrawing?

No. IRAs do not allow loans. You can withdraw money, but you cannot borrow it and pay it back. If you withdraw and then want to put the money back, you can do a rollover contribution, but this counts as a new contribution and is subject to annual contribution limits.

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

You can withdraw your contributions penalty-free at any time. If you need more than your contributions, you will owe tax and penalty on the earnings portion unless you meet one of the IRS exceptions. Some people use their Roth as an emergency fund for this reason — contributions are always accessible. If you do not have enough contributions to cover the emergency, you will have to decide whether the tax and penalty are worth it.