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 can withdraw them penalty-free only after you turn 59½ and have held the account for at least five tax years, or in a few specific hardship situations. The IRS treats contributions and earnings as separate buckets, and it matters which one you're taking from.

The five-year rule applies to each Roth IRA you own separately. If you opened your first Roth in 2020, you cannot touch the earnings until 2025 at the earliest — even if you opened a second Roth in 2024. The clock does not reset with each new account.

Key Takeaways

  • You can withdraw contributions (the money you deposited) from a Roth IRA at any time without penalty or taxes, regardless of your age.
  • Earnings can only be withdrawn penalty-free after age 59½ and five tax years of account ownership, or in specific hardship situations like disability or medical expenses.
  • The five-year holding period is tied to when you first opened any Roth IRA, not when you made each individual contribution.
  • Withdrawing earnings before 59½ and five years triggers a 10 percent penalty plus income tax on the amount withdrawn.
  • Roth conversions have their own five-year rule separate from contributions, and converted amounts may be subject to a 10 percent penalty if withdrawn within five years.

Contributions: No age limit, no penalty, no taxes

The money you deposit into a Roth IRA each year is called a contribution. You can withdraw it at any age without owing the IRS a penalty. You also do not owe income tax on it, because you already paid taxes on that money when you earned it.

The IRS tracks how much you have contributed over the life of the account. When you withdraw, it assumes you are taking out contributions first, before any earnings. So if you put in $7,000 a year for five years and the account grew to $45,000, you could withdraw $35,000 with no penalty — that is your $35,000 in contributions. The remaining $10,000 is earnings, and those have conditions.

This rule applies even if you are 25 or 75. Age does not matter for contributions. What matters is that the money came from your own deposits, not from investment gains.

Earnings: Age 59½ and five tax years, or hardship exceptions

The earnings are the investment returns your money made inside the account — dividends, capital gains, interest. You can withdraw earnings penalty-free only if both conditions are met: you are at least 59½ years old, and you have owned the Roth IRA for at least five tax years.

The five-year clock starts on January 1 of the year you opened your first Roth IRA, not the day you opened it. If you opened a Roth on December 15, 2024, the five-year period began January 1, 2024. You can withdraw earnings penalty-free starting January 1, 2029, assuming you are also 59½ by then.

If you withdraw earnings before both conditions are met, you owe a 10 percent penalty on the earnings plus income tax on them at your regular tax rate. A $5,000 early withdrawal of earnings might cost you $500 in penalty plus $1,000 to $1,500 in taxes, depending on your income bracket.

Hardship exceptions that avoid the 10 percent penalty

The IRS allows penalty-free withdrawals of earnings in a few situations, though you still owe income tax on the earnings:

  • 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: You withdraw to pay unreimbursed medical costs that exceed 7.5 percent of your adjusted gross income for the year.
  • First-time home purchase: You withdraw up to $10,000 in your lifetime to buy, build, or rebuild a home. This is a one-time limit, not per year.
  • Birth or adoption: You withdraw up to $35,000 per person per birth or adoption event, with a three-year window to use the money. This limit applies per event, not per year, and you can use it once per person per event.
  • Substantially equal periodic payments: You set up a series of equal withdrawals based on your life expectancy. Once started, you must continue for at least five years or until age 59½, whichever is longer.

These exceptions waive the 10 percent penalty but not the income tax. You will still report the earnings as taxable income on your tax return. You do not need to prove hardship to the IRS in advance — you report it when you file your taxes — but you should keep documentation in case of an audit.

Roth conversions have a separate five-year rule

If you converted money from a traditional IRA or 401(k) into a Roth IRA, that converted amount has its own five-year holding period. You cannot withdraw the converted amount penalty-free until five tax years have passed since the conversion, even if you are over 59½.

The five-year period for conversions runs separately from the five-year period for regular contributions. If you made contributions starting in 2020 and did a conversion in 2024, you have two different five-year clocks running. The conversion amount cannot be touched penalty-free until 2029.

Converted amounts are also subject to the 10 percent penalty if withdrawn within five years, unless you meet one of the hardship exceptions. The pro-rata rule can complicate conversions if you have a traditional IRA with pre-tax money; consult a tax professional before converting if you have both account types.

How the IRS orders your withdrawals

When you take money out of a Roth IRA, the IRS assumes you withdraw in this order: contributions first, then conversions (by year), then earnings. This is called the ordering rule. It means you can usually access your contributions without triggering tax or penalty, even if the account has grown significantly.

If you have multiple Roth IRAs, the IRS treats them as one account for ordering purposes. If you have $50,000 in contributions spread across three Roth accounts and you withdraw $30,000, the IRS counts that as a $30,000 withdrawal of contributions, not a partial withdrawal from each account.

The ordering rule protects you in most cases, but it can create tax complications if you have conversions mixed with contributions. A tax professional can help you plan withdrawals if you have both.

Frequently Asked Questions

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

You do not owe a penalty, but you should still report the withdrawal on your tax return using Form 8606. The IRS tracks Roth IRA activity through your financial institution, and reporting prevents confusion if you are audited. Not reporting a contribution withdrawal can trigger a notice even though you owe no tax.

What happens if I withdraw earnings by mistake before age 59½?

You owe the 10 percent penalty plus income tax on the earnings. You can request a waiver of the penalty if you can show the withdrawal was due to a mistake, but the IRS rarely grants waivers. It is better to ask your Roth IRA custodian about redepositing the money within 60 days if you realize the error quickly.

Does the five-year rule apply if I inherit a Roth IRA?

No. If you inherit a Roth IRA from a spouse, you can treat it as your own and the five-year period is based on when the original owner opened it. If you inherit from a non-spouse, the five-year rule does not apply to you, but you must withdraw the entire account within 10 years under current rules.

Can I withdraw earnings to pay for college tuition?

Earnings withdrawn for college tuition are subject to the 10 percent penalty and income tax unless you meet one of the specific hardship exceptions. College tuition is not listed as a penalty-free exception for Roth IRAs, though it is for 529 plans and some other accounts.

What if I need money but I am not sure if it is a contribution or earnings?

Contact your Roth IRA custodian — the bank, brokerage, or fund company holding the account — and ask for a statement showing your total contributions to date. Subtract that from your current balance to find your earnings. Your custodian can also help you understand the five-year rule for your specific account.