You can withdraw your contributions anytime without penalty, but earnings have strict rules

A Roth IRA lets you pull out the money you put in — your contributions — whenever you want, with no tax or penalty. That is the main advantage over a traditional IRA. But the earnings those contributions grew into are locked away until you turn 59½, with narrow exceptions. The IRS treats these two parts of your account completely differently, and knowing which is which determines whether you can actually access your money.

The reason for this split is straightforward: Roth contributions go in after taxes, so the IRS has already collected from you. Earnings, by contrast, have never been taxed. The IRS wants those earnings to sit untouched until retirement. If you take them out early without meeting an exception, you pay income tax on them plus a 10% penalty.

Key Takeaways

  • You can withdraw contributions (the money you deposited) from your Roth IRA at any age with no tax or penalty, as long as your account has been open for at least five tax years.
  • Withdrawals of earnings before age 59½ trigger a 10% penalty and income tax unless you meet a narrow exception like disability, first-time home purchase, or may have access to education expenses.
  • The five-year rule applies separately to each Roth IRA you open, so opening a new account restarts the clock.
  • If you convert a traditional IRA to a Roth, the five-year rule and early withdrawal penalties explore to the converted amount as if it were earnings, not contributions.
  • Your brokerage or bank will report withdrawals to the IRS, and you may owe taxes or penalties even if you do not receive a 1099-R form.

How the IRS separates contributions from earnings

When you withdraw from a Roth IRA, the IRS assumes you are taking out contributions first, then earnings. This is called the pro-rata rule, and it works in your favor for withdrawals. If your account holds $10,000 in contributions and $2,000 in earnings, and you withdraw $6,000, the IRS treats that as $6,000 of contributions coming out, leaving $4,000 in contributions and $2,000 in earnings behind.

However, the five-year rule still applies. Your Roth IRA must have been open for at least five tax years before you can withdraw contributions penalty-free. The five-year period starts on January 1 of the year you opened the account, not the day you funded it. So if you opened a Roth on December 31, 2023, and funded it on January 15, 2024, the five-year clock started January 1, 2023 — meaning you could withdraw contributions penalty-free starting January 1, 2028.

If you have multiple Roth IRAs, each account has its own five-year clock. Opening a second Roth IRA does not restart the five-year rule for your first one, but it does create a separate five-year requirement for that new account.

Exceptions that let you withdraw earnings early

The IRS allows early withdrawal of earnings without the 10% penalty in a few specific situations. You still owe income tax on the earnings, but you avoid the penalty. These exceptions are: disability, death (your beneficiary can withdraw), first-time home purchase (up to $10,000 lifetime), and may have access to education expenses for you or a family member.

For first-time home purchase, "first-time" means you have not owned a home in the past two years. You can use the $10,000 limit once in your lifetime, and it applies across all your Roth IRAs combined. If you withdraw $10,000 for a home purchase from one Roth and then try to withdraw $5,000 from another Roth for the same purpose, the second withdrawal counts against your lifetime limit.

may have access to education expenses include tuition, fees, books, supplies, and room and board if the student attends at least half-time. The student can be you, your spouse, your child, or your grandchild. You can withdraw earnings for education without the penalty, but you still pay income tax on that amount.

Disability means you are unable to work due to a physical or mental condition that is expected to last at least 12 months or result in death. You will need documentation from a physician. If you die, your beneficiary can withdraw your entire account — contributions and earnings — with no penalty, though they will owe income tax on the earnings portion.

What happens if you withdraw before the five-year rule is met

If your Roth IRA has not been open for five tax years and you withdraw contributions, you face a 10% penalty on that withdrawal. You do not owe income tax on contributions themselves, but the penalty applies. This is rare and usually a mistake — most people do not realize the five-year rule exists until they try to withdraw.

If you withdraw earnings before age 59½ and before the five-year rule is met, you owe both income tax and the 10% penalty on the earnings portion. The penalty is calculated on the earnings only, not on contributions. So if you withdraw $8,000 from an account that holds $6,000 in contributions and $2,000 in earnings, you owe income tax and a 10% penalty on the $2,000 in earnings, but nothing on the $6,000 in contributions.

You report the withdrawal on Form 8606 when you file your tax return. Your brokerage will send you a Form 1099-R showing the total amount withdrawn. The form does not break down contributions versus earnings — that calculation is your responsibility, and you need to track it yourself or ask your brokerage for a contribution history.

Roth conversions and the five-year rule

If you convert money from a traditional IRA to a Roth IRA, the five-year rule applies to the converted amount as if it were earnings, not contributions. This is a separate five-year clock from your regular Roth contributions. You can withdraw the converted amount penalty-free after five years, but before that, you owe the 10% penalty if you are under 59½.

The income tax on the conversion itself is due when you file your return for the year of conversion — you do not owe it again when you withdraw. But the 10% penalty applies if you withdraw the converted amount within five years and you are under 59½. This rule exists to prevent people from converting traditional IRAs to Roth IRAs and when ready withdrawing the money to avoid taxes.

If you convert $50,000 from a traditional IRA to a Roth in 2024, you owe income tax on $50,000 in 2024. If you then withdraw $30,000 in 2025 and you are 45 years old, you owe a 10% penalty ($3,000) on that withdrawal because the five-year period has not passed. The income tax was already paid in 2024.

How to report withdrawals on your tax return

Your brokerage reports Roth IRA withdrawals to the IRS on Form 1099-R. You receive a copy, and the IRS receives a copy. You report the withdrawal on Form 8606, which is where you calculate how much of your withdrawal is contributions (tax-free) and how much is earnings (taxable or penalty-subject).

Form 8606 requires you to list all your Roth IRAs, all your traditional IRAs, and all your SEP or straightforward IRAs. This is because the pro-rata rule applies across all your IRAs combined, not just the one you withdrew from. If you have a traditional IRA with $100,000 and a Roth IRA with $50,000 in contributions and $10,000 in earnings, and you withdraw $10,000 from the Roth, the IRS calculates what portion of your total IRA balance is contributions versus earnings and applies that ratio to your withdrawal.

If you do not file Form 8606 or file it incorrectly, the IRS may treat your entire withdrawal as earnings and assess tax and penalties. You can file an amended return to correct this, but it is easier to get it right the first time. If you are unsure how to calculate your basis, contact your brokerage for a contribution history or consult a tax professional.

Frequently Asked Questions

Can I withdraw my contributions if my Roth IRA is less than five years old?

No. The five-year rule applies to contributions as well as earnings. Your account must have been open for at least five tax years before any withdrawal is penalty-free. If you withdraw before five years have passed, you owe a 10% penalty on contributions and income tax plus a 10% penalty on earnings.

What if I need money for an emergency?

You can withdraw your contributions without penalty once the five-year rule is met, regardless of the reason. If the five-year rule has not been met, you face a 10% penalty on contributions. Earnings can only be withdrawn early without penalty if you meet one of the IRS exceptions: disability, death, first-time home purchase, or may have access to education expenses.

Do I owe taxes on contributions I withdraw?

No. Contributions are money you already paid taxes on, so withdrawing them is not a taxable event. You owe taxes only on earnings. However, if you withdraw before the five-year rule is met, you owe a 10% penalty on the contributions themselves, even though you do not owe income tax.

If I convert a traditional IRA to a Roth, can I withdraw it right away?

You can withdraw the converted amount after five years without the 10% penalty if you are under 59½. The income tax on the conversion is due in the year you convert, not when you withdraw. If you withdraw within five years, you owe the 10% penalty. Contributions you made directly to the Roth are subject to a separate five-year rule.

What if my brokerage does not send me a Form 1099-R?

You still owe taxes or penalties on the withdrawal. The IRS receives a copy of the form, and they will expect you to report it on your return. If you do not report it and the IRS matches their records to your return, you may face penalties and interest. Always report Roth withdrawals even if you do not receive a form, and keep your own records of contributions and withdrawals.