Yes, you can withdraw from your Roth IRA, but the rules depend on what you're withdrawing and how old you are
You can take money out of your Roth IRA at any time. The catch is that the tax treatment and potential penalties depend on whether you're withdrawing your contributions (the money you put in) or your earnings (the growth on that money). The IRS also looks at how long you've had the account and whether you meet certain age requirements.
The basic rule: contributions come out tax-free and penalty-free whenever you want. Earnings are trickier. If you're under 59½ and haven't held the account for at least five tax years, you'll owe income tax and a 10% early withdrawal penalty on the earnings portion. If you're 59½ or older and the account has been open for five tax years or more, you can withdraw everything tax-free and penalty-free.
Key Takeaways
- You can withdraw your contributions (money you deposited) from a Roth IRA at any time without taxes or penalties.
- Withdrawing earnings before age 59½ triggers a 10% penalty and income tax unless you meet a narrow exception like disability or a first-time home purchase.
- The five-year rule applies to the account itself, not to each contribution separately — it starts the year you first opened any Roth IRA.
- Your Roth IRA custodian (the bank or brokerage holding the account) processes the withdrawal, usually within three to five business days.
The difference between contributions and earnings
Your Roth IRA holds two types of money: contributions and earnings. A contribution is money you put in yourself, up to the annual limit (which varies by year). Earnings are the investment gains — dividends, interest, capital gains — that your money made while sitting in the account.
When you withdraw, the IRS assumes you take contributions out first. So if you put in $5,000 and your account grew to $7,000, your first $5,000 out is contribution and comes out clean. The remaining $2,000 is earnings and is subject to the age and holding-period rules.
This matters because contributions are always yours to take without penalty. Earnings are the part the IRS wants to stay invested until you're older or meet a specific exception.
Withdrawing contributions: no age limit, no penalty
You can withdraw your contributions whenever you want, in any amount, without owing taxes or penalties. This is one of the biggest advantages of a Roth IRA over a traditional IRA — the money you put in is always accessible.
To withdraw contributions, contact your Roth IRA custodian (your bank, brokerage, or investment firm) and request a withdrawal. They will ask how much you want to withdraw and where to send the money. Most custodians process withdrawals within three to five business days. Some allow you to request a withdrawal online through their website or app; others require a phone call or written form.
Keep in mind that if your account holds investments like stocks or mutual funds, the custodian may need to sell those holdings to send you cash. This can take a few extra days and may trigger capital gains if the investments have grown in value.
Withdrawing earnings before age 59½: penalties and exceptions
If you withdraw earnings before you turn 59½, you'll owe income tax on that amount plus a 10% early withdrawal penalty — unless you meet one of the IRS exceptions. The exceptions are narrow and specific: disability, medical expenses that exceed 7.5% of your adjusted gross income, first-time home purchase (up to $10,000 lifetime), health insurance premiums while unemployed, and a few others.
The most common exception is the first-time home buyer rule. You can withdraw up to $10,000 of earnings (lifetime, not per year) to pay for the purchase of a first home — yours, a spouse's, a parent's, or a child's. You must use the money within 120 days of withdrawal.
If you don't meet an exception, the 10% penalty applies to the earnings portion only, not to your contributions. So if you withdraw $7,000 and $2,000 of it is earnings, you pay the penalty on $2,000, not $7,000. You'll owe income tax on that $2,000 at your regular tax rate, which varies based on your income and filing status.
The five-year rule: when you can withdraw earnings tax-free
The five-year rule is about the account, not about individual contributions. It means you must have opened your Roth IRA at least five tax years before you withdraw earnings tax-free. The clock starts on January 1 of the year you opened the account, not on the day you opened it.
For example, if you opened your Roth IRA on December 15, 2019, the five-year period runs from January 1, 2019, through December 31, 2023. You can withdraw earnings tax-free starting January 1, 2024, as long as you're also 59½ or meet an exception.
If you have multiple Roth IRAs, the five-year rule applies to all of them together. You don't restart the clock when you open a second account. This is important if you're thinking about rolling over a traditional IRA to a Roth — the five-year rule for that conversion starts when you convert, not when you opened your original Roth.
How to request a withdrawal from your custodian
Contact your Roth IRA custodian directly. This is the financial institution where your account lives — your bank, brokerage firm, or investment company. You can usually find withdrawal instructions on their website or by calling customer service.
Most custodians let you choose how to receive the money: a check mailed to your address, a direct deposit to your bank account, or a wire transfer. Direct deposit is usually fastest. Some custodians charge a small fee for wire transfers; checks and direct deposits are typically free.
You may need to specify whether you want a partial withdrawal (a set dollar amount) or a full withdrawal (closing the account entirely). If you're taking out only contributions, make sure to tell the custodian that so they process it correctly. Some custodians have online forms; others require a phone call or a written request.
What happens to your account after a withdrawal
A withdrawal reduces the balance in your Roth IRA but doesn't close the account unless you withdraw everything. You can keep making contributions to the same account in future years, and any money left in the account continues to grow tax-free.
If you withdraw earnings before age 59½ and don't meet an exception, you'll owe taxes and penalties when you file your tax return. The custodian doesn't withhold taxes automatically on Roth IRA withdrawals the way they do on traditional IRAs, so you may owe a lump sum at tax time. It's a good idea to set aside money for taxes if you're withdrawing earnings early.
If you withdraw your entire Roth IRA balance, the account closes. You can open a new Roth IRA later if you want, but you'll start a new five-year holding period for that account's earnings.
Frequently Asked Questions
Can I withdraw my contributions without reporting it to the IRS?
You don't need to report a withdrawal of contributions on your tax return because you already paid taxes on that money when you earned it. However, your custodian may send you a Form 1099-R for record-keeping purposes. Keep your withdrawal documentation in case the IRS has questions.
What if I withdraw earnings by mistake and I'm under 59½?
You'll owe income tax and the 10% penalty on the earnings portion when you file your tax return. Some custodians allow you to redeposit the money back into your Roth IRA within 60 days (called a rollover), which can undo the withdrawal and avoid the penalty — but you must do this quickly and follow the rules exactly. Contact your custodian when ready if this happens.
Do I have to take withdrawals from my Roth IRA at any age?
No. Unlike traditional IRAs, Roth IRAs have no required minimum distributions during your lifetime. You can leave the money in the account to grow as long as you want, even after age 72. This is one reason Roth IRAs are useful for leaving money to heirs.
Can I withdraw money to pay off debt or cover everyday expenses?
You can withdraw your contributions anytime for any reason. If you need to withdraw earnings and you're under 59½, you'll owe taxes and a 10% penalty unless you meet an IRS exception. It's generally better to use contributions first and leave earnings to grow, since earnings are what build long-term retirement wealth.
How long does it take to get my money after I request a withdrawal?
Most custodians process withdrawals within three to five business days. Direct deposits to your bank account are usually fastest. Checks take longer because they have to be mailed and then clear at your bank. Wire transfers can be same-day or next-day depending on the custodian and your bank.