Terms of Use:
Yes, contributions to a Roth IRA may be withdrawn tax- and penalty-free at any time, for any reason. After the IRA has been established for five years,
earnings
on contributions may be withdrawn tax- and penalty-free, provided the owner
meets any of the following specifications: has reached age 59½, has become
permanently and totally disabled, is deceased, or is withdrawing the funds for
first-time home purchase.
First-time home purchase withdrawals are limited to a maximum withdrawal of
$10,000. The $10,000 you take out for your first home is a qualified
distribution as long as you've had your Roth account for five years. This
means you can take out your retirement money without penalty, and Roth
earnings are tax-free.
If, however, your Roth IRA is a newer account, the withdrawal is an early
distribution. As with a traditional IRA early withdrawal, a Roth
holder can use the first-home exception to avoid the 10 percent penalty, but
might owe tax on earnings that are withdrawn.