what can you withdraw from a roth ira without penalty
As a general rule, you can withdraw your contributions from a Roth IRA at any time without paying tax or penalty. If you withdraw money from a conversion too soon after that event, and before age 59Â½, you may incur a penalty.xample: You convert your traditional IRA, with a value of $20,000, to a Roth IRA, paying tax on the entire amount. Two years later, when you are under age 59Â½, you withdraw $5,000 from the Roth IRA, and the distribution comes from conversion money because you havenât made any regular contributions to your Roth IRA.
Age 59 and under. You can withdraw contributions you made to your Roth IRA anytime, tax-and penalty-free. However, you may have to pay taxes and penalties on earnings in your Roth IRA.Withdrawals from a Roth IRA you've had less than five years. If you take a distribution of Roth IRA earnings before you reach age 59Â½ and before the account is five years old, the earnings may be subject to taxes and penalties.owever, you may have to pay taxes and penalties on earnings in your Roth IRA. Withdrawals from a Roth IRA you've had less than five years. If you take a distribution of Roth IRA earnings before you reach age 59Â½ and before the account is five years old, the earnings may be subject to taxes and penalties.