What Are the Rules for a Roth IRA Withdrawal?


Quick Answer

The rules for Roth IRA withdrawals depend on the ages of the account owner and the account itself, explains Charles Schwab. People who are 59 or younger may face a 10-percent penalty for Roth IRA distributions, explains Fidelity. As of 2014, there aren't penalties for withdrawals between the ages of 59 1/2 and 70, although there are penalties for not withdrawing once the owner reaches 70 1/2 years old.

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What Are the Rules for a Roth IRA Withdrawal?
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Full Answer

People of any age may withdraw from a Roth IRA without additional penalties if the account is older than five years and the payment is intended for certain approved purchases, such as a first-home purchase, medical bills and insurance while unemployed, and qualifying educational expenses, explains Fidelity.

Those who are 59 years old and younger face a 10-percent penalty if not using the Roth IRA distribution for approved types of purchases, explains Charles Schwab. Those who are 59 or younger who are withdrawing from a Roth IRA account that is less than five years old face additional taxes as well as potential penalties.

Withdrawals made by an account owner who is between 59 1/2 and 70 years old are not subject to penalties. However, taxes still apply to distributions from Roth IRA accounts that are less than five years old, says Fidelity.

Once an account owner reaches 70 1/2, withdrawals from a Roth IRA are mandatory. Owners who fail to withdraw the minimum required distribution incur extra penalties, explains Fidelity.

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