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 — at any age without taxes or penalties. The earnings those contributions grew into are different. You can withdraw earnings before age 59½ only in a few specific situations, and doing so outside those situations costs you a 10% penalty plus income tax on the earnings themselves.

The key distinction is between what you deposited and what your account earned. The IRS tracks these separately. When you withdraw, contributions come out first, then earnings. Knowing which part you are taking out determines whether the IRS charges you.

This matters because many people assume a Roth IRA is locked until retirement. It is not — but the lock applies only to the growth, not to your own money.

Key Takeaways

  • You can withdraw contributions (the money you deposited) at any time, at any age, with no tax or penalty.
  • Withdrawing earnings before age 59½ triggers a 10% penalty and income tax unless you meet one of five specific exceptions.
  • The five exceptions are: disability, medical expenses over 7.5% of income, health insurance while unemployed, first-time home purchase (up to $10,000 lifetime), and may have access to education expenses.
  • The five-year rule requires you to have held the account for five tax years before any earnings withdrawal is penalty-free, even if you are over 59½.
  • Withdrawals do not reduce future contribution room — you can still contribute the annual limit in following years.

The difference between contributions and earnings

When you put $7,000 into a Roth IRA in January, that $7,000 is your contribution. If it grows to $8,500 by December, the $1,500 gain is earnings. The IRS requires you to track both separately because the tax rules are completely different.

Your contributions came from after-tax money — you already paid income tax on that $7,000 when you earned it. That is why you can take it back out without the IRS taxing it again. The earnings, though, have never been taxed. The IRS wants tax on those earnings eventually, which is why they restrict when you can take them out.

When you request a withdrawal, the money comes out in order: contributions first, then earnings. If you withdraw $5,000 and you have $7,000 in contributions, all $5,000 is treated as a contribution withdrawal and faces no penalty. If you withdraw $9,000, the first $7,000 is contributions and the last $2,000 is earnings — that $2,000 portion may face penalties depending on your age and situation.

Withdrawing contributions before retirement

Taking out your contributions before age 59½ is straightforward: there is no penalty and no tax. You can do this for any reason or no reason. Many people use this flexibility to cover an emergency or a large expense without touching a taxable savings account.

The only catch is the five-year rule. You must have held the Roth IRA for at least five tax years before you can withdraw contributions penalty-free. This means if you open a Roth IRA in 2024, you cannot withdraw contributions without penalty until 2029. The five-year clock starts on January 1 of the year you make your first contribution, not on the date you opened the account.

If you withdraw contributions before the five-year period ends, the IRS treats the withdrawal as coming from earnings first, not contributions. That triggers the 10% penalty and income tax on the earnings portion. Once five years have passed, contributions are always available penalty-free, regardless of your age.

Withdrawing earnings before age 59½: the five exceptions

The IRS allows penalty-free earnings withdrawals before 59½ only in these situations: you are disabled, you have unreimbursed medical expenses over 7.5% of your adjusted gross income, you are paying health insurance premiums while unemployed, you are buying your first home (up to $10,000 lifetime), or you are paying may have access to education expenses.

For disability, the IRS uses a strict definition: you must be unable to engage in substantial gainful activity due to a physical or mental condition expected to last at least 12 months or result in death. A doctor's statement is required. This is not the same as Social Security disability.

For medical expenses, you can withdraw earnings penalty-free only if your unreimbursed medical costs exceed 7.5% of your adjusted gross income. If your AGI is $60,000 and your medical bills are $5,000, you do not may have access to because $5,000 is only 8.3% of $60,000 — wait, that is over 7.5%. You would may have access to. The point is the threshold is high and applies only to costs not covered by insurance or reimbursed by anyone else.

For health insurance while unemployed, you must have received unemployment benefits for at least 12 consecutive weeks in the year you withdraw or the year before. The withdrawal must pay premiums for you, your spouse, or your dependents.

For a first-time home purchase, you can withdraw up to $10,000 lifetime (not per year) penalty-free. "First-time" means you have not owned a home in the past two years. The money must go toward buying, building, or rebuilding a home.

For education expenses, you can withdraw earnings penalty-free to pay tuition, fees, books, supplies, and equipment for you, your spouse, children, or grandchildren attending an accredited school. Room and board counts only if the student is at least half-time.

The five-year rule for earnings withdrawals

Even if you meet one of the five exceptions above, you still must satisfy the five-year rule to withdraw earnings penalty-free. Your Roth IRA must have been open for at least five tax years. If you open a Roth in 2024 and become disabled in 2025, you cannot withdraw earnings penalty-free until 2029 because the five-year period has not ended.

The five-year clock is per account, not per person. If you have multiple Roth IRAs, each one has its own five-year clock. If you convert a traditional IRA to a Roth, that conversion starts a separate five-year clock for the converted funds.

Once five years have passed, earnings withdrawals under the exceptions above are penalty-free but still taxable as income. You pay ordinary income tax on the earnings, just not the 10% penalty. If you are over 59½ and five years have passed, earnings withdrawals are both penalty-free and tax-free.

Withdrawals after age 59½

Once you reach 59½, you can withdraw contributions and earnings penalty-free, as long as the five-year rule is satisfied. If you opened the Roth in 2020 and you turn 59½ in 2025, you can withdraw everything tax-free and penalty-free because both conditions are met.

If you opened the Roth in 2024 and turn 59½ in 2025, you can withdraw contributions tax-free and penalty-free, but earnings withdrawals are still taxable because the five-year rule has not been satisfied. You pay income tax on the earnings but no 10% penalty.

Unlike traditional IRAs, Roth IRAs have no required minimum distributions during your lifetime. You never have to withdraw anything. This makes a Roth useful for leaving money to heirs or for people who do not need the money in retirement.

What happens to your contribution room

Withdrawing from a Roth IRA does not reduce your contribution room for future years. If you contribute $7,000 in 2024 and withdraw $5,000 in 2025, you can still contribute $7,000 in 2025 (assuming you have earned income and meet other requirements). The annual contribution limit is based on your income, not on your account balance.

This is different from a 401(k), where withdrawals do reduce your ability to contribute later. A Roth is more flexible in this way — you can take money out and put it back in without losing future contribution room.

Frequently Asked Questions

Can I withdraw my contributions without filing taxes?

Yes. Contributions are never taxed when withdrawn. You do not need to report the withdrawal on your tax return unless you also withdrew earnings. The IRS already knows about the contribution because you reported it when you made it.

What if I withdraw earnings by mistake before I turn 59½?

You owe the 10% penalty and income tax on the earnings portion unless you meet one of the five exceptions. You can request a redeposit (called a "rollover") within 60 days to undo the withdrawal and avoid the penalty, but you must act quickly. Contact your Roth IRA provider when ready if this happens.

Does withdrawing from a Roth count as income for financial aid?

Roth IRA withdrawals do not count as income for federal financial aid purposes. However, the balance of your Roth IRA is counted as an asset, which can reduce aid may be able to access. Withdrawals for education expenses are treated the same as withdrawals for any other reason in this regard.

Can I withdraw from a Roth IRA I inherited from someone else?

Yes, but the rules are different. Inherited Roth IRAs have their own five-year rule and withdrawal requirements depending on whether you are a spouse or non-spouse beneficiary. If you inherited a Roth, contact the provider for the specific rules that explore to you.

What if I converted a traditional IRA to a Roth — can I withdraw that money?

Converted funds have their own five-year rule separate from contributions. You can withdraw the converted amount penalty-free after five years, but earnings on the conversion are subject to the same rules as earnings on regular contributions. The conversion itself is taxable in the year you do it.