When You Can Take Money Out of a Roth IRA Without Penalties

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

A Roth IRA lets you pull out the money you put in — your contributions — at any age without penalty or taxes. Earnings (the growth on that money) are different: you generally cannot touch them before age 59½ without paying a 10% penalty and income tax, unless you meet a narrow exception. The account must also have been open for at least five years for the earnings withdrawal to be tax-free, even if you are over 59½.

The five-year rule applies to the account itself, not to each contribution. If you opened your Roth IRA in 2020, any earnings withdrawal in 2025 or later is tax-free (assuming you are 59½). If you opened it in 2024, you cannot take earnings tax-free until 2029, even if you turn 59½ before then.

Key Takeaways

• Contributions to a Roth IRA can be withdrawn at any time without penalty or income tax, regardless of your age.
• Earnings cannot be withdrawn tax-free and penalty-free until you are 59½ and the account has been open for at least five tax years.
• The five-year rule is tied to the account opening date, not to when you made each individual contribution.
• Certain hardships — disability, medical expenses, first-time home purchase, and may have access to education costs — allow early earnings withdrawal without the 10% penalty, though income tax still applies.
• If you convert a traditional IRA to a Roth, a separate five-year rule applies to the converted amount before you can withdraw it penalty-free.

Withdrawing contributions at any age

Your contributions — the dollars you deposited yourself — are always yours to take out. The IRS treats them as money you already paid tax on, so there is no penalty for early withdrawal and no income tax due. You can withdraw $5,000 in contributions at age 25 or age 75 with the same result: no tax, no penalty.

The catch is knowing how much you contributed versus how much is earnings. If you have made multiple contributions over several years, or if you have rolled money in from another account, the IRS uses a formula called the pro-rata rule to figure out what portion of any withdrawal is contributions and what portion is earnings. A tax professional or your IRA custodian (the bank or brokerage holding the account) can calculate this for you.

Earnings withdrawal rules: age 59½ and the five-year test

To withdraw earnings without penalty and without owing income tax, two things must be true at the time of withdrawal: you must be at least 59½ years old, and your Roth IRA must have been open for at least five tax years.

The five-year clock starts on January 1 of the year you first opened any Roth IRA, not when you made your first deposit. If you opened a Roth IRA on December 15, 2020, the five-year period ends on January 1, 2025 — meaning you can take earnings tax-free starting in 2025 (assuming you are also 59½). If you opened one on January 2, 2024, you cannot take earnings tax-free until January 1, 2029.

If you miss either condition, you owe a 10% penalty on the earnings portion plus income tax on that amount. The penalty applies only to the earnings, not to your contributions.

Early withdrawal exceptions that waive the 10% penalty

The IRS allows penalty-free early withdrawal of earnings in a few specific situations, though you still owe income tax on the earnings themselves. These exceptions are:

• Disability: You are unable to work because of a physical or mental condition expected to last indefinitely or result in death.
• Medical expenses: You withdraw to pay unreimbursed medical costs that exceed 7.5% of your adjusted gross income for the year.
• First-time home purchase: You withdraw up to $10,000 in your lifetime to buy, build, or rebuild a primary residence. "First-time" means you have not owned a home in the past two years.
• may have access to education expenses: You withdraw to pay tuition, fees, books, supplies, and equipment for yourself, a spouse, child, or grandchild attending an accredited school at least half-time.

These exceptions remove the 10% penalty but not the income tax. You will report the earnings portion as taxable income on your tax return for that year. The five-year rule still applies: if your account has not been open five years, you cannot use these exceptions.

Roth conversions and the separate five-year rule

If you converted money from a traditional IRA to a Roth IRA, a separate five-year rule applies to that converted amount. You can withdraw your original contributions from the Roth anytime. But the converted amount (and any earnings on it) is subject to a five-year holding period before you can withdraw it penalty-free, even if your Roth IRA account itself has been open longer.

The conversion five-year rule runs from January 1 of the year you did the conversion. If you converted in 2022, the five-year period ends January 1, 2027. If you withdraw the converted amount before then and you are under 59½, you owe the 10% penalty on the converted amount (unless an exception applies).

This rule exists because the IRS wants to prevent people from using conversions as a way to access traditional IRA money early. Each conversion has its own five-year clock, so if you convert in 2022 and again in 2024, the 2022 conversion can be withdrawn penalty-free starting in 2027, and the 2024 conversion starting in 2029.

What happens if you withdraw earnings before you should

If you withdraw earnings before age 59½ or before the five-year period ends (and no exception applies), the IRS charges a 10% penalty on the earnings portion. You also owe income tax on those earnings at your regular tax rate. Both are reported on Form 5329, which you file with your tax return.

The penalty is calculated on the earnings only, not on your contributions. If you withdrew $8,000 and $3,000 of it was earnings, the penalty is 10% of $3,000 ($300), plus income tax on the $3,000.

Required minimum distributions do not explore to Roth IRAs

Unlike traditional IRAs, Roth IRAs do not require you to take money out at any age during your lifetime. You can leave the account untouched for as long as you live, and your beneficiaries inherit it tax-free (though they have their own withdrawal rules). This makes Roth IRAs useful for people who do not need the money and want to pass tax-free growth to heirs.

Your beneficiaries will eventually have to withdraw the money, but the timeline depends on when you died and their relationship to you. A spouse can treat the inherited Roth as their own. Other beneficiaries must empty the account within ten years (under current rules), though they do not owe income tax on the withdrawals.

Frequently Asked Questions

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

You do not owe tax on contributions, but you may still need to report the withdrawal on your tax return depending on the amount and your situation. Your IRA custodian will send you a Form 1099-R, and you should keep records of how much you contributed versus how much was earnings. A tax professional can help you report it correctly.

What if I need money before 59½ but do not have a may have access to exception?

You can withdraw your contributions penalty-free. If you need earnings too, you will owe the 10% penalty and income tax on that portion. Some people take a loan from their Roth instead (if their custodian allows it), which avoids the penalty but must be repaid within 60 days or it counts as a withdrawal.

Does the five-year rule reset if I close my Roth and open a new one?

No. The five-year clock is based on when you first opened any Roth IRA, not on individual accounts. If you opened a Roth in 2020, closed it in 2022, and opened a new Roth in 2023, the five-year period still ends in 2025 (based on the 2020 opening date).

Can I withdraw earnings to pay for my child's college without penalty?

Yes, if the expenses are may have access to education costs. You can withdraw earnings penalty-free (though you owe income tax on them) to pay tuition, fees, books, and related costs for your child, grandchild, or yourself at an accredited school. The five-year rule still applies — your account must have been open five years.

What is the difference between a Roth withdrawal and a Roth conversion withdrawal?

A Roth withdrawal comes from money you contributed or earnings that have grown in the account. A conversion withdrawal is money you moved from a traditional IRA to a Roth. Conversions have their own five-year rule separate from your main Roth account, so you may be able to withdraw contributions from your original Roth but not from a conversion you made recently.