When can I start withdrawing from my Roth IRA?

When can I start withdrawing from my Roth IRA?

You can start withdrawing your contributions to a Roth IRA at any time without penalty. However, to withdraw earnings tax-free, you must be at least 59½ years old and have had the account for at least five years.

What if I need to withdraw early?

If you withdraw earnings before age 59½, you may face a 10% penalty and income tax on the earnings. There are exceptions, like for first-time home purchases or certain medical expenses.

Can I withdraw my contributions without penalties?

Yes, you can withdraw your contributions at any time without penalties or taxes since you've already paid taxes on that money.

What happens if I withdraw too much?

If you withdraw more than your contributions, the excess may be subject to taxes and penalties if you're under 59½ and it’s not for an exception.

Are there any exceptions to the withdrawal rules?

Yes, exceptions include buying your first home, qualified education expenses, and certain medical costs. It's best to consult a tax advisor for specifics.