You can withdraw from a Roth IRA, but the rules depend on your age and how long you have held the account

A Roth IRA withdrawal moves money from your retirement account to your checking account, but the IRS treats different types of withdrawals differently. If you are under 59½, you can withdraw the money you contributed (called your basis) anytime without penalty or tax. If you withdraw earnings—the investment gains—before 59½, you typically owe income tax plus a 10% early withdrawal penalty, unless you meet a narrow exception. If you are 59½ or older and have held the account for at least five years, you can withdraw everything tax-free and penalty-free.

The mechanics of the transfer itself are straightforward: you contact your Roth IRA custodian (the bank or brokerage holding the account), request a withdrawal, and the money lands in your checking account within one to three business days. The custodian will ask you to specify whether you are withdrawing contributions or earnings, because that determines what tax forms they file and what you owe the IRS.

Key Takeaways

  • Contributions to a Roth IRA can be withdrawn at any age without tax or penalty; earnings cannot be withdrawn tax-free until you are 59½ and have held the account for five years.
  • Your custodian needs to know whether you are withdrawing contributions or earnings, because the IRS taxes and penalizes them differently.
  • The withdrawal itself takes one to three business days to reach your checking account, and your custodian will send you a 1099-R form for tax reporting.
  • If you withdraw earnings before 59½, you will owe income tax on that amount plus a 10% penalty, unless you meet an IRS exception like disability or a first-time home purchase.

Contributions versus earnings: which can you withdraw without penalty

The IRS distinguishes between money you put in (contributions) and money your investments earned (earnings). You can withdraw contributions at any time, at any age, with no tax and no penalty. This is true even if you are 25 and the account is brand new. The custodian tracks your total contributions since you opened the account, and that is the amount you can pull out penalty-free.

Earnings are different. If you withdraw earnings before age 59½, you owe federal income tax on that amount at your ordinary tax rate, plus a 10% early withdrawal penalty. That penalty is calculated on the earnings only, not on your contributions. For example, if you contributed $5,000 and it grew to $6,500, you can withdraw the $5,000 with no tax or penalty. If you withdraw the $1,500 in earnings before 59½, you owe income tax on $1,500 plus $150 in penalty (10% of $1,500).

If you are 59½ or older and have held the Roth IRA for at least five years, you can withdraw both contributions and earnings tax-free and penalty-free. The five-year clock starts on January 1 of the year you opened your first Roth IRA, not on the date you opened it. If you opened one in June 2020, the five-year period ends on January 1, 2025.

Exceptions to the early withdrawal penalty

The IRS allows penalty-free (but not tax-free) withdrawals of earnings before 59½ in specific situations. You still owe income tax on the earnings, but you skip the 10% penalty. These exceptions include disability, medical expenses that exceed 7.5% of your adjusted gross income, health insurance premiums paid while unemployed, and a first-time home purchase (up to $10,000 lifetime). You can also withdraw earnings penalty-free to pay for education expenses for yourself or a family member.

If you meet one of these exceptions, tell your custodian when you request the withdrawal. They will not automatically know, and if you do not claim the exception, they will withhold taxes as if the full amount is subject to penalty. You can recover the penalty when you file your tax return by claiming the exception on Form 5329, but it is easier to tell the custodian upfront.

How to request the withdrawal from your custodian

Contact your Roth IRA custodian by phone, online portal, or mail. Most large custodians (Fidelity, Vanguard, Charles Schwab, your bank) allow you to request a withdrawal through their website or mobile app. You will need to specify the withdrawal amount and the account where you want the money sent. If you are sending it to your checking account at a different bank, you may need to provide your routing number and account number.

The custodian will ask whether you are withdrawing contributions or earnings. If you are withdrawing only contributions, tell them that. If you are withdrawing a mix, they will calculate how much of your withdrawal counts as contributions (based on your total contributions to date) and how much counts as earnings. If you are claiming an exception to the penalty, mention it now.

The custodian will also ask how you want the money delivered. Most offer direct deposit to your checking account (one to three business days) or a check mailed to you (three to seven business days). Direct deposit is faster and more secure. Some custodians charge a fee for withdrawals; check your account agreement or ask before you request.

What happens after the money arrives

Your custodian will send you a Form 1099-R by January 31 of the following year. This form reports the withdrawal to the IRS and to you. Box 1 shows the gross amount withdrawn. Box 2a shows the taxable amount (if you withdrew only contributions, this will be zero). Box 7 contains a code that tells the IRS why you withdrew the money—code 7 means it was a normal distribution (you were 59½ or older), code 1 means it was an early distribution subject to penalty, and other codes indicate exceptions.

If you withdrew contributions only, you will not owe tax on that withdrawal. If you withdrew earnings and are under 59½ with no exception, you will owe income tax on the earnings at your ordinary rate, plus the 10% penalty. When you file your tax return, report the 1099-R and calculate any penalty owed on Form 5329. If your custodian withheld taxes from the withdrawal, those withholdings will be credited against your tax bill.

Transferring to a checking account at a different bank

If your Roth IRA is at one bank and your checking account is at another, the withdrawal still works the same way. You request the withdrawal from your IRA custodian and provide your checking account details (routing number and account number). The custodian will initiate an ACH transfer or wire to your checking account. ACH transfers take one to three business days. Wire transfers are faster (same day or next day) but some custodians charge a fee.

Double-check the routing and account numbers before you submit the request. A mistake can send the money to the wrong account, and recovering it takes time. If you are unsure of your routing number, ask your bank or find it on a check or your online banking portal.

Frequently Asked Questions

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

You do not owe tax on contributions, but your custodian still reports the withdrawal on Form 1099-R. The IRS will see it. As long as you withdrew only contributions, you will not owe tax, and the 1099-R will show a taxable amount of zero. You do not need to do anything special on your tax return.

What if I do not know how much I have contributed to my Roth IRA?

Your custodian can tell you. Call them or log into your account online and look for a statement or summary that shows your total contributions since you opened the account. This number is also on your annual 1099-R forms from prior years. Add up all the contributions shown and that is your basis.

Can I put the money back into my Roth IRA after I withdraw it?

Yes, but only if you do it within 60 days. This is called a rollover. You have 60 days from the date you receive the money to deposit it back into any Roth IRA (yours or another one). If you miss the 60-day window, the withdrawal is permanent and counts against your annual contribution limit for that year.

Will withdrawing from my Roth IRA affect my Social Security or other benefits?

Roth IRA withdrawals do not count as income for Social Security purposes and do not reduce your benefits. They also do not affect Medicaid or most other means-tested programs. However, if you are receiving need-based financial aid for school, a large withdrawal could affect your aid package for the following year.

What if my custodian will not let me withdraw?

Most custodians allow withdrawals without restriction, but some employer-sponsored Roth accounts (like a Roth 401(k)) have different rules. If your custodian denies your request, ask them in writing why. If they cite a plan rule, ask for a copy of that rule. If you believe they are wrong, you can file a complaint with your state's banking regulator or the Consumer Financial Protection Bureau.