Yes, but the rules depend on whether you withdraw earnings or contributions

You can move money from a Roth IRA to a bank account, but the IRS treats contributions and earnings differently. Contributions — the money you put in — can come out tax-free and penalty-free at any time. Earnings — the investment gains on that money — are subject to income tax and a 10% early withdrawal penalty if you are under 59½ and do not meet an exception.

The transfer itself is straightforward: contact your Roth IRA custodian (your bank, brokerage, or investment firm) and request a withdrawal to your bank account. The money typically arrives within three to five business days. The custodian will report the withdrawal to the IRS on Form 5498-R, which is how the IRS knows you took money out.

The tax consequences depend on your age, how long you have held the account, and how much of your withdrawal is contributions versus earnings. If you withdraw only contributions before age 59½, you owe nothing. If you withdraw earnings before 59½, you owe income tax on those earnings plus a 10% penalty — unless you may have access to for an exception like disability, a first-time home purchase (up to $10,000 lifetime), or a Roth conversion.

Key Takeaways

  • Roth IRA contributions can be withdrawn at any age without tax or penalty; earnings cannot unless you are 59½ or meet a specific exception.
  • The custodian holding your Roth IRA processes the withdrawal and sends the money to your bank account in three to five business days.
  • The IRS tracks withdrawals through Form 5498-R, so the custodian will report exactly how much you took out.
  • If you withdraw earnings before 59½ without an exception, you will owe income tax on those earnings plus a 10% penalty when you file your tax return.
  • A Roth conversion allows you to move money from a traditional IRA to a Roth IRA, but you still cannot withdraw earnings penalty-free until 59½ unless an exception applies.

How the IRS separates contributions from earnings

The IRS uses a calculation called the pro-rata rule to determine what portion of your withdrawal is contributions and what portion is earnings. If you have multiple IRAs — traditional, SEP, or SIMPLE — the rule treats them as one account for this purpose. This means you cannot simply empty a traditional IRA and claim the withdrawal is all contributions.

The formula is: (total non-taxable IRA balances ÷ total IRA balances) × amount withdrawn = taxable portion. If you have $50,000 in traditional IRAs and $50,000 in Roth IRAs, and you withdraw $10,000 from the Roth, the IRS considers 50% of it earnings and 50% contributions, even if your Roth contributions were actually $40,000.

Your custodian does not calculate this for you — you do it when you file your tax return using Form 8606. This is why withdrawing from a Roth IRA before 59½ can be complicated if you also have other IRAs. Many people in this situation consult a tax professional to avoid overpaying or underpaying tax.

Exceptions that let you withdraw earnings penalty-free before 59½

The IRS allows penalty-free withdrawals of earnings in specific situations, though you still owe income tax on those earnings:

  • Age 59½ or older: No penalty, no tax on earnings if the account has been open at least five tax years.
  • Disability: You must be unable to work due to a medically determinable physical or mental condition expected to last indefinitely or result in death.
  • Death: Your beneficiary can withdraw earnings penalty-free, though they owe income tax.
  • First-time home purchase: Up to $10,000 lifetime from all your IRAs combined. You must not have owned a home in the past two years.
  • may have access to education expenses: Tuition, fees, books, supplies, and room and board for you, your spouse, or your children or grandchildren attending an accredited school.
  • Medical expenses: Unreimbursed medical costs that exceed 7.5% of your adjusted gross income in that tax year.
  • Health insurance premiums: If you are unemployed and have received unemployment benefits for at least 12 consecutive weeks.

Even if an exception applies, you must still report the withdrawal on your tax return. The custodian will send Form 5498-R to both you and the IRS, so the withdrawal is visible to the tax system.

The five-year rule for Roth IRA withdrawals

A Roth IRA has a five-year holding period that applies separately to each conversion or contribution. For contributions you make directly, the clock starts the first year you contribute. For conversions from a traditional IRA, the five-year period starts the year of the conversion.

If you withdraw earnings before the five-year period ends, you owe the 10% penalty even if you are 59½ or older — unless you meet an exception. This catches people who convert a traditional IRA to a Roth and then try to withdraw the converted amount within five years.

Contributions, however, are not subject to the five-year rule. You can withdraw contributions you made directly to the Roth at any time, regardless of how long the account has been open.

What happens when you request a withdrawal

Contact your Roth IRA custodian — the bank, brokerage, or investment company holding the account — and request a withdrawal. You can usually do this online, by phone, or by mail. The custodian will ask how much you want to withdraw and where to send it.

If your Roth holds investments like stocks or mutual funds, the custodian may need to sell them first to convert them to cash. This usually takes one to two business days. The money then transfers to your bank account via ACH, which takes another two to three business days. Total time is typically three to five business days, though some custodians are faster.

The custodian will withhold federal income tax on the taxable portion of your withdrawal unless you tell them not to. If you are under 59½ and withdrawing earnings, they will withhold 10% for federal tax and may withhold state income tax as well, depending on where you live. This withholding is not the same as the actual tax you owe — it is just a prepayment. You will reconcile the actual amount owed when you file your tax return.

Roth conversions and the pro-rata rule trap

If you have converted money from a traditional IRA to a Roth IRA, that converted money is subject to the pro-rata rule if you later withdraw it. A conversion counts as a contribution for withdrawal purposes, but only after the five-year holding period for that specific conversion ends.

Example: You convert $50,000 from a traditional IRA to a Roth in 2024. You also have $100,000 in a traditional IRA. If you withdraw $30,000 from the Roth in 2025, the pro-rata rule applies: your total non-Roth IRA balance is $100,000, your total IRA balance is $130,000, so 77% of your withdrawal ($23,100) is treated as taxable. You owe income tax on that $23,100 plus a 10% penalty ($2,310) if you are under 59½.

This is why people with large traditional IRA balances often use a strategy called a "backdoor Roth" carefully: they convert the traditional IRA to a Roth, then wait five years before withdrawing, to avoid the pro-rata rule hitting them. If you are considering a conversion, a tax professional can help you understand the consequences.

Frequently Asked Questions

Can I withdraw my Roth IRA contributions without paying tax?

Yes. Contributions you made directly to the Roth can be withdrawn at any age without income tax or penalty. The custodian will report the withdrawal, but you owe nothing on the contribution portion. You only owe tax if you withdraw earnings.

What if I do not know how much of my withdrawal is contributions versus earnings?

Your custodian can tell you the total contributions you have made to that Roth IRA. Subtract that from the current balance to find earnings. If you have converted money from a traditional IRA, the custodian should track that separately. If you are unsure, ask the custodian for a statement showing contributions and earnings.

Do I have to withdraw the whole account, or can I take out just what I need?

You can withdraw any amount. The pro-rata rule applies to whatever you withdraw, but you do not have to empty the account. If you withdraw $5,000 and your account is $100,000, only that $5,000 is subject to the pro-rata calculation.

What if I withdraw money and then want to put it back?

You can re-contribute the money as a new contribution (up to your annual limit) or roll it back into the Roth within 60 days. A 60-day rollover does not count against your contribution limit. After 60 days, the window closes and you cannot put it back without it counting as a new contribution.

Will the withdrawal show up on my credit report?

No. Roth IRA withdrawals do not appear on your credit report because they are not debt. They are your own money being moved. The withdrawal is reported to the IRS on Form 5498-R, but that does not affect your credit.