You can withdraw money from a Roth IRA to your bank account, 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 directly to your bank account through your IRA custodian — the bank, brokerage, or investment firm that holds the account. The process itself is straightforward: you request the withdrawal, the custodian processes it, and the money lands in your designated bank account within a few business days. What matters is whether you can withdraw without penalty, and that depends on two things: whether you are withdrawing contributions (the money you put in) or earnings (the growth on that money), and whether you meet the age and account-holding requirements.

Contributions to a Roth IRA can be withdrawn at any time, at any age, with no penalty and no tax. Earnings — the investment gains — can only be withdrawn tax-free and penalty-free if you are at least 59½ years old and have held the account for at least five tax years. If you withdraw earnings before meeting both conditions, you owe income tax on those earnings plus a 10 percent early withdrawal penalty.

Key Takeaways

  • You can withdraw contributions (money you deposited) from a Roth IRA at any time without penalty or tax, regardless of your age.
  • Withdrawing earnings before age 59½ or before holding the account five tax years triggers income tax and a 10 percent penalty on the earnings portion.
  • Your IRA custodian processes the withdrawal and deposits the money into your bank account within three to five business days.
  • The five-year rule applies to each Roth IRA separately, so opening a new account restarts the clock on that account's earnings.

How to request a withdrawal from your custodian

Contact your IRA custodian directly — the institution where your Roth IRA is held. This might be a bank like Chase or Wells Fargo, a brokerage like Fidelity or Vanguard, or a robo-advisor platform. Most custodians let you request a withdrawal online through your account dashboard, by phone, or by mail.

When you request the withdrawal, you will need to specify the amount and provide your bank account details for the deposit. The custodian will ask which account the money is coming from if you hold multiple IRAs. Some custodians require you to specify whether you are withdrawing contributions or earnings; others calculate this automatically based on the order of your deposits and the IRS pro-rata rule (a rule that treats all your Roth IRAs as one pool for tax purposes).

The withdrawal typically posts to your bank account within three to five business days. Some custodians offer expedited processing for an additional fee, but standard processing is free.

The difference between withdrawing contributions and earnings

Your Roth IRA contains two types of money: contributions (the dollars you deposited yourself) and earnings (investment gains, dividends, and interest). The IRS tracks these separately for tax purposes, and the rules for withdrawing them are different.

Contributions come out first and tax-free. If you deposited $5,000 per year for three years, you have $15,000 in contributions. You can withdraw any or all of that $15,000 at any time without penalty or tax. Your custodian will show your contribution basis on your account statement — this is the total you have deposited over the life of the account.

Earnings come out after contributions are exhausted. If your $15,000 in contributions has grown to $18,000, the extra $3,000 is earnings. Withdrawing that $3,000 before age 59½ or before the five-year holding period triggers both income tax and a 10 percent early withdrawal penalty on the $3,000. The tax rate depends on your income bracket; the penalty is flat 10 percent.

The five-year rule and when it starts

The five-year rule applies to earnings only. You must have held your Roth IRA for at least five tax years before you can withdraw earnings tax-free, even if you are over 59½. The five-year period starts on January 1 of the year you first contributed to any Roth IRA, not the year you opened the account.

If you opened a Roth IRA on December 15, 2023, and made your first contribution that same year, the five-year clock started on January 1, 2023. You can withdraw earnings tax-free starting January 1, 2028. If you opened the account in 2024 and contributed then, the clock started January 1, 2024, and you can withdraw earnings tax-free starting January 1, 2029.

Each Roth IRA has its own five-year clock. If you open a second Roth IRA in 2025, that account's five-year period starts January 1, 2025, even if your first account has been open for years. However, the IRS treats all your Roth IRAs as one account for the pro-rata rule — a calculation that determines how much of any withdrawal is contributions versus earnings across all your accounts combined.

What happens if you withdraw earnings early

Withdrawing earnings before age 59½ and before the five-year holding period results in two costs: income tax and a 10 percent penalty. Both explore only to the earnings portion, not to your contributions.

The income tax is calculated at your marginal tax rate — the rate that applies to your highest income bracket that year. If you are in the 22 percent bracket, you owe 22 percent tax on the earnings withdrawn. The 10 percent penalty is separate and flat. So on a $3,000 earnings withdrawal, you might owe $660 in tax (22 percent) plus $300 in penalty (10 percent), totaling $960.

Your custodian does not automatically withhold this tax and penalty. You owe it when you file your tax return. The custodian will send you a Form 1099-R reporting the withdrawal, and you report it on your return. Some custodians offer the option to have them withhold taxes at the time of withdrawal, but this is optional and does not cover the penalty.

Exceptions that waive the early withdrawal penalty

The IRS allows penalty-free early withdrawals of Roth IRA earnings in a few specific situations, though income tax still applies. These exceptions are narrow and require documentation.

First-time homebuyer: You can withdraw up to $10,000 in earnings (lifetime limit) penalty-free if you are buying your first home. You must use the money within 120 days of withdrawal, and you cannot have owned a home in the past two years. Income tax still applies to the earnings.

Disability or medical hardship: If you become disabled or face significant medical expenses, you may withdraw earnings penalty-free. Disability must be certified by Social Security or the IRS. Medical expenses must exceed 7.5 percent of your adjusted gross income. Income tax still applies.

Education expenses: Earnings can be withdrawn penalty-free for may have access to education costs — tuition, fees, books, room and board for yourself or a dependent. Income tax applies to the earnings.

Contributions can always be withdrawn penalty-free and tax-free, regardless of the reason, so these exceptions matter only if you need to tap earnings.

Timing and what to expect after you request

Once you submit a withdrawal request, your custodian will process it and send the money to your bank account. Standard processing takes three to five business days. Weekends and holidays do not count as business days, so a request submitted on Friday may not clear until Wednesday.

Your custodian will deduct the withdrawal amount from your IRA balance when ready, even if the money has not yet arrived in your bank account. If you have investments in the account, the custodian will sell enough to cover the withdrawal amount. This means the exact dollar amount you requested will leave your IRA, but the timing of when it arrives in your bank depends on your bank's processing speed.

You will receive a Form 1099-R from your custodian by January 31 of the following year, reporting the withdrawal amount and whether it was a may have access to or non-may have access to distribution. Keep this form for your tax return.

Frequently Asked Questions

Can I withdraw my contributions without paying tax or penalty?

Yes. Contributions to a Roth IRA can be withdrawn at any time, at any age, with no tax and no penalty. Your custodian will show your contribution basis on your account statement. Only earnings are subject to tax and penalty rules.

What is the pro-rata rule and how does it affect my withdrawal?

The pro-rata rule treats all your Roth IRAs as one account for tax purposes. If you have multiple Roth IRAs and withdraw from one, the IRS calculates what percentage of your total Roth IRA balance is contributions versus earnings, and applies that percentage to your withdrawal. This can result in part of your withdrawal being taxed even if you intended to withdraw only contributions.

Do I have to report the withdrawal to the IRS myself?

Your custodian reports it on Form 1099-R, which goes to the IRS and to you. You report the withdrawal on your tax return. If it is a may have access to distribution (contributions only, or earnings after age 59½ and five years), you may not owe tax. If it is non-may have access to, you owe tax and possibly penalty on the earnings portion.

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

You can re-contribute the money, but it counts as a new contribution subject to annual contribution limits. If you have already hit your annual limit, you cannot re-contribute until the next year. This is different from a rollover, which has different rules and timing.

What if my bank account information changes after I request the withdrawal?

Contact your custodian when ready before the withdrawal processes. Once the money has been sent to the account you specified, the custodian cannot redirect it. If it goes to a closed or wrong account, you will need to contact your bank or the receiving institution to recover it.