# Penalty for withdrawing from Roth?

**URL:** <https://community.clark.com/t/penalty-for-withdrawing-from-roth/3551>\
**Category:** Investing\
**Created:** [September 30, 2023, 2:06pm UTC](https://community.clark.com/t/penalty-for-withdrawing-from-roth/3551 "2023-09-30T14:06:38Z")\
**Posts on this page:** 4\
**Page:** 1

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**Author:** ![Genie\_Hagar](https://sea2.discourse-cdn.com/flex016/user_avatar/community.clark.com/genie_hagar/32/352_2.png) [@Genie\_Hagar](https://community.clark.com/u/Genie_Hagar)\
**Post date:** [September 30, 2023, 2:06pm UTC](https://community.clark.com/t/penalty-for-withdrawing-from-roth/3551/1 "2023-09-30T14:06:38Z")

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Son has had Target Retirement Funds in Roth for 15 years. He no longer works at company but has been allowed to contribute $6000 per year. He is 45 years old, self employed. If he needs to take out any money before he is 59, will there be a penalty or any expense?

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**Author:** ![grouchodad](https://sea2.discourse-cdn.com/flex016/user_avatar/community.clark.com/grouchodad/32/3276_2.png) [@grouchodad](https://community.clark.com/u/grouchodad)\
**Post date:** [October 29, 2024, 9:43pm UTC](https://community.clark.com/t/penalty-for-withdrawing-from-roth/3551/3 "2024-10-29T21:43:32Z")

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Roth IRA withdrawal guidelines

Before making a Roth IRA withdrawal, keep in mind the following rules to avoid a potential 10% early withdrawal penalty:

```
Withdrawals must be taken after age 59½.
Withdrawals must be taken after a five-year holding period.

```

Funds in a Roth IRA consist of contributions and earnings. You may withdraw from the **contributions** with no fee, any age. Less than 59 1/2 withdrawals for the _earnings_ will hit you with a 10% fee.

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**Author:** ![clydewolf](https://avatars.discourse-cdn.com/v4/letter/c/839c29/32.png) [@clydewolf](https://community.clark.com/u/clydewolf)\
**Post date:** [November 4, 2024, 1:42am UTC](https://community.clark.com/t/penalty-for-withdrawing-from-roth/3551/4 "2024-11-04T01:42:53Z")

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Money is distributed from a Roth IRA in an ordered sequence:  
First to be distributed is Contributions, always tax and penalty free.  
Second to be distributed is Conversions. Converted money is distributed tax free. Converted money will be subject to a penalty during the first 5 years after its conversion. Each conversion has it’s own 5 year period.  
Last to be distributed is gains. Gains may be be taxable and may be subject to a 10% penalty.

See IRS Pub 590B,Page 32, figure 2-1 ([https://www.irs.gov/pub/irs-pdf/p590b.pdf](https://www.irs.gov/pub/irs-pdf/p590b.pdf))

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**Author:** ![ochotona](https://sea2.discourse-cdn.com/flex016/user_avatar/community.clark.com/ochotona/32/293_2.png) [@ochotona](https://community.clark.com/u/ochotona)\
**Post date:** [November 4, 2024, 12:40pm UTC](https://community.clark.com/t/penalty-for-withdrawing-from-roth/3551/5 "2024-11-04T12:40:49Z")

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@Genie_Hagar I think the record-holding responsibility is up to your son, in order that he not withdraw more than his contributions.

That said, I would 100% not do that. It would be like eating your own seed corn. People who make a habit of draining their retirement assets before retirement have a huge risk of ending up destitute in retirement.

He need to cut back / do without or find more income somewhere out there.