For the most part, Roth IRA withdrawal rules are more flexible than those for a 401(k) or even a traditional IRA. Show Because you already paid taxes on the money you’ve contributed to a Roth IRA, you can withdraw your contributions any time, without penalty. The key word there is contributions — the money you put into the account. Different rules apply to your investment earnings. To withdraw investment earnings without owing income taxes and a 10% penalty, you’ll have to follow specific distribution rules, based on your age and how long you’ve owned the account. When can I withdraw money from my Roth IRA without penalty?In general, you can withdraw your Roth IRA contributions at any time. But you can only pull the earnings out of a Roth IRA after age 59 1/2 and after owning the account for at least five years. Withdrawing that money earlier can trigger taxes and an 10% early withdrawal penalty. However, there are many exceptions. The 5-year rule for Roth IRAs requires you to hold your account for at least five years in order to avoid paying taxes or even penalties on the earnings in your Roth IRA. Roth IRA withdrawal rules if you're younger than 59½And you’ve owned a Roth IRA for less than five years ...Generally you’ll owe income taxes and a 10% penalty if you withdraw earnings from your account. You can avoid the penalty, but not the income taxes, if you meet one of the following exceptions.
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If you're younger than 59½And you’ve owned a Roth IRA for five years or more ...You can avoid taxes and penalties on earnings you withdraw from your account if you meet one of the following exceptions.
Roth IRA withdrawal rules if you’re 59½ or olderAnd you’ve owned a Roth IRA for less than five years ...You’ll owe income tax but no penalty on earnings that you withdraw. If you’re 59½ or olderAnd you’ve owned a Roth IRA for five years or more ...You can withdraw earnings with no tax or penalty. What's next? |