Roth vs Traditional IRA withdrawal rules
When you can withdraw without tax under IRS Publication 590-B, when you owe the 10 percent early-withdrawal penalty per 26 U.S.C. § 72(t) (reported on IRS Form 5329), the two 5-year rules under 26 U.S.C. § 408A(d)(2), required minimum distributions per SECURE Act 2.0 § 107, and the inherited IRA 10-year rule under 26 U.S.C. § 401(a)(9)(H). Last verified 2026-05-27.
Side-by-side withdrawal table
| Scenario | Roth | Traditional |
|---|---|---|
| Withdraw contributions, any age | Tax-free, penalty-free, anytime | Not separable; all funds are pre-tax |
| Withdraw earnings before 59.5 | Taxable + 10% penalty (limited exceptions) | Taxable + 10% penalty (limited exceptions) |
| Withdraw earnings after 59.5 | Tax-free if account 5+ years old | Taxable as ordinary income |
| Required minimum distribution | None during owner's lifetime | Begins at age 73 (75 from 2033) |
| Inherited (non-spouse) | 10-year rule, no income tax | 10-year rule, ordinary income tax on every dollar |
| First-home purchase exception | $10,000 lifetime, tax-free if 5-year met | $10,000 lifetime, taxable but no penalty |
The two 5-year rules
Earnings clock (26 U.S.C. § 408A(d)(2)(B))
Per IRS Publication 590-B, your Roth must be open for 5 tax years before earnings can be withdrawn tax-free. The clock starts on January 1 of the year of your first contribution, even if you contributed in March of that year. Open one early to start the clock, even with $1.
Conversion clock, per conversion
Per 26 U.S.C. § 408A(d)(3)(F) and IRS Publication 590-B, each Roth conversion has its own 5-year clock for penalty-free withdrawal of the converted principal before age 59.5. Once you turn 59.5, this rule no longer applies regardless of when you converted.
Required minimum distributions
Per SECURE Act 2.0 § 107 (Public Law 117-328, Division T), the RMD age was raised to 73 for individuals born 1951 through 1959 and to 75 for those born 1960 or later. RMDs are calculated per IRS Publication 590-B "Required Minimum Distributions" by dividing your prior-year-end balance by your IRS Uniform Lifetime Table factor. Failure to withdraw triggers the 25 percent excise tax under 26 U.S.C. § 4974(a), reduced to 10 percent if corrected within the correction window.
Roth IRAs have no required minimum distributions during the original owner's lifetime per 26 U.S.C. § 408A(c)(5) and IRS Publication 590-B. This is a structural advantage: you can let the balance compound tax-free indefinitely and pass it to heirs under the 10-year rule.
Worked RMD example
| Age | 73 |
| Traditional IRA balance (year-end) | $500,000 |
| Uniform Lifetime factor | 26.5 |
| Required withdrawal | $18,868 |
Add this to ordinary income for the year. The same $500K in a Roth: $0 RMD.
Early withdrawal exceptions
Per 26 U.S.C. § 72(t)(1) and IRS Publication 590-B "Additional 10 percent Tax", withdrawals from earnings before age 59.5 normally incur a 10 percent penalty plus income tax (reported on IRS Form 5329). The exceptions listed below, codified in 26 U.S.C. § 72(t)(2), waive the penalty. Income tax may still apply for Traditional, but not for Roth contributions per IRS Publication 590-A ordering rules.
| Exception | Limit | Notes |
|---|---|---|
| First-home purchase | $10,000 lifetime | Buyer must not have owned a home in the prior 2 years |
| Higher education | Qualified expenses | Tuition, fees, books for self, spouse, children, grandchildren |
| Medical expenses | Above 7.5% of AGI | Unreimbursed medical bills exceeding the threshold |
| Health insurance (unemployed) | Premiums while unemployed | Receiving unemployment 12+ weeks |
| Disability | Total balance | Permanent and total disability per IRS definition |
| Substantially equal payments (72t) | Calculated by formula | Lock in for 5 years or until 59.5, whichever later |
| Birth or adoption | $5,000 per child | Per parent, applied within 12 months |
| Domestic abuse victim | $10,000 (SECURE 2.0) | Self-certify, withdraw within 1 year of abuse |
Inherited IRAs: the SECURE Act 10-year rule
Per SECURE Act of 2019 (codified at 26 U.S.C. § 401(a)(9)(H)) and IRS Publication 590-B "Distributions After the Owner's Death", non-spouse beneficiaries (children, grandchildren, friends) must fully withdraw both Roth and Traditional IRAs within 10 years of the owner's death. The difference is what you owe along the way.
Withdraw within 10 years. No income tax on the distributions. Heirs can let the balance grow tax-free for the full 10 years and take it as a lump sum at the end.
Withdraw within 10 years. Every dollar is ordinary income tax to the heir at their bracket. A $500K inheritance in a peak-earning heir's hands could be taxed near 40% federally plus state.