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

You can take out the money you put into your Roth IRA without penalty or taxes at any time, for any reason. The IRS calls these your contributions, and they are always yours to access. However, the earnings your money made — the investment gains — come with conditions. You can withdraw earnings penalty-free only if you are 59½ or older and have held the account for at least five tax years, or if you meet a narrow list of exceptions like disability or a first home purchase.

The key to avoiding mistakes is knowing the difference between what you contributed and what your account earned. Your Roth IRA statement shows both. When you request a withdrawal, the IRS assumes you take contributions out first, then earnings. That order protects you — you can pull out your contributions without worrying about the five-year rule or your age.

Key Takeaways

  • Your contributions (the money you deposited) can be withdrawn at any time without penalty or income tax, regardless of your age or how long you have owned the account.
  • Earnings (investment gains) withdrawn before age 59½ are subject to income tax and a 10 percent penalty unless you meet a specific exception such as disability, death, or a first-time home purchase up to $10,000.
  • The IRS assumes you withdraw contributions before earnings, so you must track how much you contributed versus how much your account has grown.
  • The five-year rule requires you to have owned your Roth IRA for at least five tax years before you can withdraw earnings penalty-free, even after age 59½.
  • Withdrawals do not reduce your future contribution limit, so you can replenish the account in later years.

The difference between contributions and earnings

Your Roth IRA holds two types of money: what you put in, and what it earned. A contribution is a dollar you deposited yourself. An earning is a dollar your investments made through interest, dividends, or capital gains. If you deposited $5,000 and it grew to $6,200, you contributed $5,000 and earned $1,200.

Your account statement lists both. Look for a line that says "basis" or "contributions" — that is your contribution total. Subtract it from your current balance to find your earnings. This math matters because the IRS taxes and penalizes earnings differently than contributions.

When you withdraw money, the IRS assumes you take contributions out first. So if you withdraw $3,000 from the example above, the IRS treats all $3,000 as a contribution withdrawal, not an earnings withdrawal. This order is automatic and works in your favor — it lets you access your own money without tax or penalty.

Withdrawing contributions before age 59½

You can withdraw your contributions at any age without income tax or the 10 percent early withdrawal penalty. The IRS does not care why you need the money or how old you are. This is one of the Roth IRA's main advantages over a traditional IRA, where all withdrawals before 59½ face the 10 percent penalty (with narrow exceptions).

However, you must be able to prove how much you contributed. Keep records of every deposit you made, including rollovers from other accounts. Your Roth IRA provider (Fidelity, Vanguard, Schwab, or your bank) can tell you your contribution basis if you ask, but the burden is on you to track it. If the IRS audits you and you cannot document your contributions, it will treat the withdrawal as an earnings withdrawal and assess tax and penalty.

Withdrawing contributions does not reduce your future contribution limit. If you withdraw $2,000 in 2024, you can still contribute up to the annual limit (currently $7,000 for those under 50) in 2024 and every year after.

Withdrawing earnings before age 59½: the exceptions

Earnings withdrawn before age 59½ normally trigger income tax plus a 10 percent penalty. But the IRS allows penalty-free withdrawals of earnings in a few specific situations. You still owe income tax on the earnings, but you avoid the 10 percent penalty.

The main exceptions are: you are disabled (as defined by the IRS), you are a beneficiary withdrawing after the account holder's death, you are a first-time homebuyer taking up to $10,000 lifetime, or you are paying may have access to education expenses. "First-time homebuyer" means you have not owned a home in the past two years — you do not have to be buying your first home ever. "may have access to education expenses" include tuition, fees, books, and room and board at an accredited school for you, your spouse, or your children.

Even if an exception applies, you must still satisfy the five-year rule (see below). If you opened your Roth IRA less than five tax years ago, you cannot withdraw earnings penalty-free under any exception except death or disability.

The five-year rule for earnings

To withdraw earnings penalty-free, your Roth IRA must have been open for at least five tax years. The clock starts on January 1 of the year you opened the account, not the day you opened it. If you opened your Roth IRA on December 15, 2023, the five-year period began January 1, 2023, and ends December 31, 2027.

This rule applies even if you are over 59½. If you are 62 and opened your Roth IRA four years ago, you cannot withdraw earnings without penalty until the five-year period closes. The exception: if you inherited a Roth IRA, the five-year period is based on when the original owner opened it, not when you inherited it.

The five-year rule is separate from the age requirement. You must meet both: be 59½ or older (or may have access to for an exception) AND have owned the account for five tax years.

How to request a withdrawal

Contact your Roth IRA provider directly — the bank, brokerage, or investment company that holds your account. You can usually request a withdrawal online, by phone, or by mail. The provider will ask how much you want to withdraw and where to send the money (to you, or to another financial institution if you are rolling it over).

The provider will not ask you to prove that the withdrawal is contributions versus earnings — that is your responsibility. If you are withdrawing only contributions, you do not need to do anything special. If you are withdrawing earnings and you are under 59½, tell the provider which exception applies (disability, first home, education, or death of the account holder). The provider will report the withdrawal to the IRS on Form 5498-R, and you will report it on your tax return.

Withdrawals typically process within three to five business days. Some providers charge a fee for withdrawals; check your account agreement. The money is not taxed when it leaves the account — taxes are owed when you file your return the following year, if they explore.

What happens if you withdraw earnings early without an exception

If you withdraw earnings before age 59½ and do not may have access to for an exception, you owe income tax on the earnings at your ordinary tax rate, plus a 10 percent penalty. The penalty is calculated on the earnings amount only, not the whole withdrawal.

Example: You withdraw $5,000 from your Roth IRA. Your contributions were $3,000 and your earnings are $2,000. The IRS treats the first $3,000 as a contribution (no tax, no penalty) and the $2,000 as earnings. If you are 35 and have no exception, you owe income tax on the $2,000 at your tax bracket rate, plus $200 (10 percent of $2,000) as a penalty. If you are in the 22 percent tax bracket, you owe $440 in tax plus $200 in penalty, for a total of $640.

You report this on Form 5498-R and Form 8606 when you file your tax return. If you do not report it correctly, the IRS will contact you. You can avoid the penalty by amending your return if you later realize you made a mistake, but you cannot undo the withdrawal itself.

Frequently Asked Questions

Can I withdraw my contributions and put them back later?

You can withdraw contributions at any time, but you cannot put the same money back into the same Roth IRA. However, you can contribute new money up to your annual limit in the same year or future years. If you withdrew $2,000 in 2024, you can contribute $2,000 again in 2024 (if you have not yet hit the annual limit) or in 2025.

What if I withdraw earnings by mistake and I am under 59½?

You owe income tax and the 10 percent penalty on the earnings. However, you can file Form 5329 with the IRS to request a waiver of the penalty if you can show reasonable cause — for example, a serious illness or financial hardship. Waivers are not automatic, but the IRS grants them in some cases. You still owe the income tax.

Do I have to withdraw money from my Roth IRA at any age?

No. Unlike a traditional IRA, a Roth IRA has no required minimum distributions during your lifetime. You can leave the money in the account as long as you want, and it will continue to grow tax-free. Your beneficiaries will have to withdraw it after you die, but you do not.

Can I roll over a Roth IRA withdrawal to another account?

Yes, but only if you do it within 60 days. You can withdraw money and deposit it into another Roth IRA, or into a Roth 401(k) if your employer offers one. You can do this only once per 12-month period. If you miss the 60-day window, the withdrawal is treated as a permanent withdrawal and may be taxed.

Does a Roth IRA withdrawal affect my taxes or my income for other programs?

Contribution withdrawals do not affect your taxes or your reported income. Earnings withdrawals are reported as income on your tax return if you are under 59½ and have no exception. This reported income could affect your may be able to access for other programs like Medicaid, subsidies, or student aid, depending on how those programs calculate income. Check with the program administrator if you are concerned.