Craig Wear, CFP®Craig Wear, CFP® | Expert in Roth Conversions & Tax-Efficient Retirement Strategies for IRA Millionaires

Roth IRA Withdrawal Rules Explained | How to Access Your Money Early

19 Sept 2025 · 1 min

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You can withdraw Roth IRA contributions anytime without taxes or penalties because you already paid taxes on them. Earnings are locked until 59½ and your account has been open five years. Craig Wear walks through the numbers and explains how to report it correctly on Form 8606.

Questions this video answers

$7,000 per year for 10 years (total contributions = $70,000).

Account value = $120,000; earnings = $50,000 (120,000 − 70,000).

59½ years old.

A five-year account holding rule; conversions have their own five-year clock.

IRS Form 8606.

Chapters

Hey there. Don't let this Roth IRA myth stop you from investing and saving for your future. So there's a big misunderstanding about Roth IRAs. People think the money's locked up until retirement. The fact is you can withdraw your contributions, but not your earnings anytime you want to. Tax and penalty free. Why is that? Well, think about it. You've already paid taxes on that money. You didn't get a tax deduction when you put the money into the Roth IRA. So let's say you contributed 7,000 a year for 10 years. That's 70,000 of your money that you contributed. If your account grew to let's say it's worth 120,000, you can still pull the original 70,000 out whenever you want without penalties. The extra 50,000 in earnings is what's locked up until you're 59 and a half and your account is five years old. So if you took the money from a conversion, that has its own five year clock too. And whatever you do, report it properly on IRS Form 8606. That's how you show what's your contribution and avoid triggering taxes.