The Roth IRA 5-Year Rule: What to Know

Rules for Roth IRA withdrawals carry five-year stipulations for earnings, beneficiaries and conversions.

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Updated Feb 9, 2026 · 2 min read

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Roth IRAs offer significant tax advantages — and, unsurprisingly, there are strings attached. You’ll need to abide by IRS rules for these investment retirement accounts to avoid the sticker shock of penalties or taxes when you take distributions.

Here's a summary of how the Roth IRA five-year rule works:

Contributions: You can withdraw contributions you made to the Roth IRA penalty- and tax-free at any time.
Earnings: If you're under 59 ½ and have held the account for less than five years, withdrawals of earnings are subject to taxes and penalties unless you qualify for an exception.
Conversions and beneficiaries: If you convert a traditional IRA or 401(k) to a Roth IRA, withdrawals are subject to a five-year waiting period to avoid a penalty. Distributions to beneficiaries of a deceased IRA holder are also subject to the five-year rule.

Roth IRA five-year rule for withdrawals

If you've had your Roth IRA account open for at least five years and are 59 ½ or older, you can withdraw your investment earnings tax-free and penalty-free. If you don't wait five years before withdrawing earnings, you may have to pay taxes and a 10% penalty on the earnings portion of your withdrawal

IRS.gov. Roth comparison chart. Accessed Feb 9, 2026.
View all sources

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This five-year rule applies specifically to investment earnings. Contributions made to a Roth IRA can be withdrawn at any time, without taxes and penalty.
The five-year period begins Jan. 1 of the year you made your first contribution to a Roth IRA. Once you clear that five-year period, for withdrawals of earnings to qualify as tax-free, they must also be done after you've reached age 59 ½.
If you've had your Roth for less than five years or are under 59 ½, there are also exceptions that can get you off the hook for the 10% penalty on withdrawn earnings and, in some cases, you might be able to bypass income taxes as well.

» Learn more about Roth IRA early withdrawal penalties

Exceptions to the 10% penalty

Here's a roundup of the conditions that may let you bypass the 10% penalty or both the 10% penalty and the income taxes you would otherwise owe on withdrawn earnings:

Early distributions of earnings for these reasons are considered qualified: not subject to taxes or the 10% penalty

Early distributions of earnings for these reasons are considered exceptions: taxable as income, but not subject to the 10% penalty

You've held a Roth IRA for at least five years AND you are taking the distribution in one of the following circumstances:

You're age 59 1/2 or older.
You're permanently and totally disabled.
As a beneficiary of the Roth IRA after death of the account owner.
To use up to $10,000 for a first-time home purchase.

You're taking the distribution for qualified education expenses.
You’re withdrawing up to $5,000 in the year after the birth or adoption of your child.
You are taking the distribution for unreimbursed medical expenses that exceed 7.5% of your adjusted gross income for the year or for health insurance premiums while you are unemployed.
You are taking qualified reservist distributions (for members of the military reserve called to active duty).
You are taking a series of substantially equal distributions.
The distribution is due to an IRS levy.
You have not held a Roth IRA for at least five years, but you are 59 1/2 or older, permanently and totally disabled, inherited the Roth IRA after death of the account owner or using up to $10,000 for a first-time home purchase.

Five-year rule for Roth IRA conversions

The five-year rule also applies to funds converted from a traditional IRA or 401(k) into a Roth IRA.

For this rule, the five-year period begins on the first day of the tax year in which you converted money from a traditional IRA (or did a rollover from a qualified retirement plan) to your Roth IRA . For example, if you do a conversion on May 1, 2025, the rule for that conversion actually begins on January 1, 2025. Each conversion or rollover you make is subject to a separate five-year waiting period.

If you don’t wait the requisite five-year period from conversion to withdrawal, you may have to pay a 10% penalty, along with any income taxes owed. The same exceptions apply to the five-year rule of withdrawals of conversions as any other type of early distributions — see the chart above for examples.

» Learn more about Roth IRA conversion rules

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Five-year rule for Roth IRA beneficiaries

Beneficiaries of a Roth IRA are also subject to the five-year rule when the Roth IRA owner passes away. Death is an exception to penalties for early withdrawals, but to avoid ordinary taxes, beneficiaries must still follow the waiting-period rules on withdrawals .

If you are the beneficiary of a Roth IRA, double-check the timing of the account's initial contributions, conversions or rollovers.

Article sources

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1. IRS.gov. Roth comparison chart. Accessed Feb 9, 2026.
2. IRS.gov. Instructions for Form 8606. Accessed Feb 9, 2026.
3. Internal Revenue Service. Publication 590-B, Distributions from Individual Retirement Arrangements (IRAs). Accessed Feb 6, 2026.