When You Can Withdraw Money From a Roth IRA Without Penalty

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

A Roth IRA lets you take out the money you put in — your contributions — at any time without penalty or tax, regardless of your age. The earnings those contributions generated are different: you cannot touch them before age 59½ without paying income tax on the withdrawal plus a 10 percent penalty, with a few narrow exceptions.

The IRS tracks contributions and earnings separately in your account. When you withdraw, the IRS assumes you take contributions out first. This means if you have $50,000 in your Roth IRA and $30,000 of that is your own contributions, you can withdraw up to $30,000 with no tax or penalty. Anything beyond that counts as earnings.

The five-year rule adds another layer: even if you meet an exception to the penalty, you must have held the account for at least five tax years before you can withdraw earnings tax-free. This clock starts on January 1 of the year you made your first contribution to any Roth IRA, not when you opened the account.

Key Takeaways

You can withdraw contributions (the money you deposited) from a Roth IRA at any age without tax or penalty.
Withdrawing earnings before age 59½ triggers a 10 percent penalty plus income tax unless you meet a specific exception like disability, death, or a first-time home purchase up to $10,000.
The five-year rule requires you to have held a Roth IRA for at least five tax years before earnings withdrawals are tax-free, even if you meet an exception to the penalty.
After age 59½ and once the five-year rule is met, you can withdraw both contributions and earnings with no tax or penalty.

Withdrawing contributions versus earnings

Your Roth IRA statement shows your account balance, but it does not separate contributions from earnings. You need to track this yourself or ask your provider. The IRS uses a calculation called the pro-rata rule to determine how much of your withdrawal is contributions versus earnings if you have multiple IRAs or a history of rollovers.

If you have only one Roth IRA and have made contributions over several years, the simplest approach is to keep a record of each year's contribution. When you withdraw, subtract your total contributions from your account balance. The difference is earnings.

Contributions come out first in the IRS's view. If your account has $100,000 total and you contributed $60,000 over time, withdrawing $40,000 means you are taking $40,000 of contributions with no tax or penalty. Withdrawing $80,000 means $60,000 is contributions (tax-free, penalty-free) and $20,000 is earnings (subject to tax and penalty unless an exception applies).

The five-year holding period and when it starts

The five-year rule is not about your age — it is about how long you have owned a Roth IRA. The clock starts on January 1 of the first tax year you made a contribution to any Roth IRA, even if you only contributed $100.

If you opened your first Roth IRA on December 15, 2019, and made a contribution by the tax filing important date (April 15, 2020), your five-year period began January 1, 2019. You would satisfy the five-year rule on January 1, 2024. If you opened the account in 2024, your five-year period does not end until 2029.

The five-year rule applies separately to each type of IRA. A five-year period for a Roth IRA does not count toward a five-year period for a traditional IRA conversion. If you converted a traditional IRA to a Roth IRA, that conversion has its own five-year rule for the converted amount.

Exceptions to the 10 percent early withdrawal penalty

The IRS allows you to withdraw earnings before age 59½ without the 10 percent penalty in these situations: you are disabled, you are deceased (your beneficiary withdraws), you are a first-time homebuyer taking up to $10,000 lifetime, you have significant medical expenses, you pay health insurance premiums while unemployed, or you take substantially equal periodic payments under a specific formula.

Even when an exception removes the penalty, you still owe income tax on the earnings unless you also meet the five-year rule. A 35-year-old who becomes disabled can withdraw earnings without the 10 percent penalty, but if their Roth IRA is only two years old, they owe income tax on those earnings.

The first-time homebuyer exception is limited to $10,000 lifetime per person, not per purchase. If you withdrew $10,000 for a home in 2015, you cannot use this exception again in 2025 even if you are buying another home.

Withdrawals after age 59½

Once you reach 59½ and your Roth IRA has been open for at least five tax years, you can withdraw contributions and earnings with no tax or penalty. This is the standard path most people take.

There is no required minimum distribution from a Roth IRA during your lifetime. Unlike a traditional IRA, you do not have to start taking money out at any age. Your beneficiary will have different rules after you pass away.

Conversions and the pro-rata rule

If you converted money from a traditional IRA or SEP IRA to a Roth IRA, the pro-rata rule may explore to your withdrawals. This rule blends all your traditional, SEP, and straightforward IRAs together (but not Roth IRAs) to calculate how much of a withdrawal is taxable.

Example: You have a traditional IRA with $40,000 and you convert $10,000 to a Roth IRA. You now have $30,000 in the traditional IRA and $10,000 in the Roth. If you later withdraw $5,000 from the Roth, the pro-rata rule treats it as 75 percent traditional IRA money ($30,000 out of $40,000 total) and 25 percent conversion money. This affects how much is taxable.

The pro-rata rule is complex when you have multiple accounts. A tax professional can help you calculate the tax impact before you withdraw.

Roth conversions and the five-year rule

When you convert a traditional IRA to a Roth IRA, the converted amount has its own five-year rule separate from your original Roth IRA contributions. You can withdraw your original contributions anytime, but converted money is treated as earnings for the first five tax years after the conversion.

If you converted $20,000 in 2024, you cannot withdraw that $20,000 penalty-free until 2029, even if you are over 59½. The five-year clock for that conversion runs from January 1, 2024, not from when you made the conversion.

Each conversion year has its own five-year period. If you converted $10,000 in 2024 and another $10,000 in 2025, the 2024 conversion satisfies its five-year rule in 2029, and the 2025 conversion satisfies its five-year rule in 2030.

How to request a withdrawal

Contact your Roth IRA provider — the bank, brokerage, or investment company holding your account — and request a withdrawal. They will send you a form or direct you to an online portal. You choose whether to receive a check, have funds transferred to another account, or reinvest the money.

The provider will ask how much you are withdrawing and may ask whether you want to withdraw contributions, conversions, or earnings. Be clear about your intent. If you are unsure, ask the provider to calculate how much of your balance is contributions versus earnings based on your account history.

Withdrawals typically process within three to five business days. The provider will report the withdrawal to the IRS on Form 5498-R. Keep your own records of contributions so you can report the non-taxable portion correctly on your tax return.

Frequently Asked Questions

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

You must report the withdrawal on your tax return, but contributions are not taxable income. You report the total amount withdrawn and the non-taxable portion (your contributions). The IRS already receives a report from your provider, so filing accurately is important.

What happens if I withdraw earnings before age 59½ and do not meet an exception?

You owe income tax on the earnings at your ordinary tax rate plus a 10 percent penalty. If you withdrew $5,000 in earnings and your tax bracket is 22 percent, you owe $1,100 in tax plus $500 in penalty, totaling $1,600 on top of the withdrawal itself.

Can I put the money back and avoid the tax?

Yes, if you return the withdrawal within 60 days, it is treated as a rollover and no tax or penalty applies. This must be a direct return to the same Roth IRA or another Roth IRA. You can do this only once per 12-month period across all your IRAs.

Does withdrawing contributions reduce my future contribution limit?

No. Your annual contribution limit is based on your income, not on your account balance. Withdrawing $5,000 in contributions does not increase your room to contribute $5,000 more that year. Your limit stays the same.

What if I need money but do not want to withdraw from my Roth IRA?

Some Roth IRA providers offer loans against your account balance, though this is not common. You can also explore a traditional IRA loan or borrowing from another source. Withdrawing from a Roth IRA is permanent — the money and its growth do not return to the account.

This guide is for general information only and is not medical, financial, legal, or other professional advice. For decisions specific to your situation, consult a qualified professional. See our Editorial Policy.