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

A Roth IRA has two separate withdrawal rules: one for money you put in (contributions) and one for the growth that money earned (earnings). You can take out contributions at any age without penalty or taxes. Earnings are locked until you turn 59½, with narrow exceptions — and taking them out early usually costs you a 10% penalty plus income tax on the amount withdrawn.

The key to avoiding penalties is knowing which bucket you are pulling from. The IRS tracks this automatically when you withdraw, so you cannot choose to take earnings first and contributions second. Withdrawals come out contributions first, then earnings. That means if you have $50,000 in contributions and $15,000 in earnings, your first $50,000 out is penalty-free.

Key Takeaways

  • Contributions (money you deposited) can be withdrawn at any time, at any age, with no penalty or tax.
  • Earnings (investment growth) cannot be withdrawn penalty-free until you turn 59½, with only a few exceptions like disability or a first home purchase.
  • Withdrawals always come out contributions first, then earnings, so the IRS decides the order — you cannot choose.
  • Taking earnings out before 59½ costs 10% of the amount plus income tax, unless you meet a specific exception.
  • The five-year rule means you must have held the account for at least five tax years before any earnings withdrawal is penalty-free, even at 59½.

Contributions: No age limit, no penalty

Money you deposit into a Roth IRA is yours to take out whenever you want. The IRS does not charge a penalty, and you do not owe income tax on it. This is true whether you are 25 or 75, and whether the account has been open for one month or twenty years.

The catch is that you can only withdraw the amount you actually put in. If you contributed $6,500 in 2023 and $6,500 in 2024, you can withdraw up to $13,000 without penalty. The earnings on that $13,000 are separate and follow different rules. Many people use this feature as an emergency fund — they know their contributions are accessible if they need cash.

Keep records of how much you have contributed each year. The IRS Form 5498 (which your Roth IRA provider sends you) shows contributions, but tracking it yourself prevents confusion later. If you have rolled money from another retirement account into the Roth, that counts as a contribution for withdrawal purposes.

Earnings: Age 59½ is the standard unlock point

Investment earnings — the profit your money made — cannot come out penalty-free until you turn 59½. This applies whether you earned 5% or 50% on your balance. The 10% early withdrawal penalty applies to earnings taken out before that age, plus you owe income tax on the amount.

Even at 59½, there is a second requirement: the five-year rule. Your Roth IRA must have been open for at least five tax years before you can withdraw earnings penalty-free. If you opened the account at age 58, you cannot take earnings out at 59½ — you have to wait until age 63. The five-year clock starts January 1 of the year you opened the account, not on the exact date you opened it.

Example: You open a Roth IRA on November 15, 2024. The five-year period runs from January 1, 2024 through December 31, 2028. You can withdraw earnings penalty-free starting January 1, 2029, as long as you are 59½ by then. If you turn 59½ before 2029, you still have to wait until 2029.

Early withdrawal exceptions that avoid the 10% penalty

The IRS allows penalty-free earnings withdrawals before 59½ in a few specific situations. You still owe income tax on the earnings, but the 10% penalty is waived. These exceptions are narrow and require documentation.

First-time home purchase: You can withdraw up to $10,000 in 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 across all your IRAs combined, and it is a lifetime limit — once you use it, you cannot use it again even if you pay it back.

Disability: If you become unable to work due to a medical condition that is expected to last indefinitely or result in death, you can withdraw earnings penalty-free. You will need medical documentation, and the IRS has a specific definition of disability that is stricter than Social Security's.

Medical expenses: Withdrawals to pay unreimbursed medical costs that exceed 7.5% of your adjusted gross income are penalty-free. The expenses must have been paid in the year you withdraw or the year before. You still owe income tax.

Health insurance after job loss: If you lost your job and used the money to pay health insurance premiums while unemployed, you can withdraw earnings penalty-free. This only applies during the period you received unemployment benefits.

Substantially equal periodic payments (SEPP): If you set up a schedule of equal withdrawals based on your life expectancy, you can access earnings before 59½ without penalty. You must follow the schedule for at least five years or until age 59½, whichever is longer. Breaking the schedule triggers penalties on all prior withdrawals.

The five-year rule applies separately to conversions

If you converted money from a traditional IRA or 401(k) into a Roth, that conversion has its own five-year clock. Converted funds sit in a separate bucket from regular contributions. You can withdraw the amount you converted anytime, but the earnings on that conversion cannot come out penalty-free until five years have passed and you turn 59½.

This matters if you do a Roth conversion and then need the money back quickly. You can access the converted amount itself, but not the growth. Each conversion year starts its own five-year period, so if you convert in 2024 and again in 2025, each conversion has a different unlock date.

What happens if you withdraw earnings early without an exception

Taking earnings out before 59½ without meeting an exception costs you two things: a 10% penalty on the amount withdrawn, plus income tax at your regular tax rate. If you withdraw $5,000 in earnings and you are in the 22% tax bracket, you owe $500 in penalty plus $1,100 in tax — $1,600 total.

The penalty and tax are reported on your tax return for the year you withdraw. Your Roth IRA provider will send you a Form 1099-R showing the withdrawal. You report it on Form 8606 (Nondeductible IRAs) to tell the IRS which part is contributions (no tax) and which part is earnings (tax and penalty apply).

If you made a mistake and withdrew earnings early, you can put the money back within 60 days to undo the withdrawal. This is called a rollover. If you do this, the penalty and tax do not apply. You must return the full amount, including any earnings the money made while it was out.

Roth conversions and the pro-rata rule

If you have both a Roth IRA and a traditional IRA, the pro-rata rule affects your withdrawals. When you withdraw from a Roth, the IRS calculates what percentage of all your IRAs combined is pre-tax money (from a traditional IRA) versus after-tax money (from a Roth or converted funds). That same percentage applies to your Roth withdrawal, meaning some of it may be taxable even though it came from the Roth.

This is complex and usually requires a tax professional to calculate. The key point: if you have a large traditional IRA balance and a small Roth balance, withdrawing from the Roth may trigger unexpected taxes because of the pro-rata rule. Consolidating IRAs or doing a full conversion can help, but these moves have their own tax consequences.

Frequently Asked Questions

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

Yes. The five-year rule only applies to earnings. Contributions can come out anytime, regardless of how long you have owned the account. If you opened a Roth IRA yesterday and deposited $6,500, you can withdraw that $6,500 today with no penalty or tax.

What if I need money and I am not sure if it is contributions or earnings?

Your Roth IRA provider can tell you the breakdown. Ask them for a statement showing total contributions and total earnings. When you withdraw, the IRS assumes contributions come out first, so you can safely withdraw up to your total contributions without penalty. Anything beyond that is treated as earnings.

Do I have to report a contribution withdrawal on my tax return?

No. Withdrawing contributions does not require any tax reporting. Your provider may send a Form 1099-R, but you do not owe tax on it. If you withdraw earnings, you report it on Form 8606 and owe tax and penalty unless an exception applies.

Can I put money back after I withdraw it?

You can roll over a withdrawal within 60 days to put it back without penalty. You can only do this once per year across all your IRAs. If you miss the 60-day window, the withdrawal is permanent and any earnings portion is taxable. This is different from a regular contribution, which has its own annual limit.

What if I turn 59½ but my account is only four years old?

You still cannot withdraw earnings penalty-free. Both conditions must be met: you must be 59½ AND the account must be five years old. If the account is only four years old, wait one more year. At that point, you can withdraw earnings penalty-free even if you are already past 59½.