*Calculators Are Estimates, Consult with CPA

---

Early withdrawals can result in taxes and/or penalties, depending on your age, how long the Roth IRA has been open, and whether the withdrawal consists of contributions or earnings.

Ordering Rules (Important)

Roth IRA distributions are taken in the following order:

1.  Contributions 2.  Conversions 3.  Earnings

Note on conversions: Roth IRA conversion amounts may be subject to a separate 5‑year holding period for purposes of the 10% early withdrawal penalty.

Age 59½ and Under

You may withdraw your Roth IRA contributions at any time, tax‑ and penalty‑free.
However, earnings may be subject to income taxes and a 10% early withdrawal penalty unless an exception applies.

Roth IRA Open Less Than Five Years

If you take a distribution of earnings before age 59½ and before the Roth IRA has been open for five years, those earnings are generally subject to income tax and a 10% early withdrawal penalty.

The 10% penalty may be waived (but income taxes may still apply) if the withdrawal is used for one of the following:

• A first‑time home purchase (up to a $10,000 lifetime maximum)
• Qualified higher education expenses
• Qualified birth or adoption expenses
• Unreimbursed medical expenses or health insurance premiums while unemployed
• Substantially equal periodic payments (SEPPs)
• If the account owner becomes disabled or passes away

Roth IRA Open Five Years or More
If you are under age 59½ and your Roth IRA has been open for at least five years, earnings may be tax‑free only if the distribution is a qualified distribution, meaning the 5‑year requirement is met and one of the following applies:

· The withdrawal is used for a first‑time home purchase (up to a $10,000 lifetime maximum)

· The account owner becomes disabled or passes away 

If these conditions are not met, earnings are generally taxable and may be subject to the 10% early withdrawal penalty (unless another IRS exception applies).

Fully Qualified Distributions

A Roth IRA distribution is completely tax‑ and penalty‑free if both of the following are true:

· You are age 59½ or older, and

· Your Roth IRA has been open for at least five years

Important Tax Reminder
Please consult with your tax professional to understand the overall tax implications of an early Roth IRA withdrawal based on your specific situation.

Source: Internal Revenue Service (IRS) Roth IRAs, 590-B, Exceptions 

Early withdrawals may result in income taxes and/or penalties, depending on your age and whether an exception applies.
 

General Tax Treatment

Distributions from a Traditional IRA are generally taxable as ordinary income to the extent the contributions were deductible or the earnings have not previously been taxed.

Age 59½ and Under

If you are under age 59½, distributions from a Traditional IRA are generally:

• Subject to ordinary income tax, and
• Subject to a 10% early withdrawal penalty, unless an exception      applies

Unlike a Roth IRA, there is no distinction between contributions and earnings for penalty purposes in a Traditional IRA.

Exceptions to the 10% Early Withdrawal Penalty

The 10% penalty may be waived (but income taxes generally still apply) if the withdrawal is used for one of the following qualified reasons:

• A first‑time home purchase (up to a $10,000 lifetime maximum)
• Qualified higher education expenses
• Qualified birth or adoption expenses
• Unreimbursed medical expenses
• Health insurance premiums while unemployed
• Substantially equal periodic payments (SEPPs)
• If the account owner becomes disabled or passes away
• Certain other IRS‑approved exceptions

Age 59½ or Older

If you are age 59½ or older, distributions from a Traditional IRA are:

• Not subject to the 10% early withdrawal penalty
• Generally subject to ordinary income tax

Required Minimum Distributions (RMDs)

Traditional IRAs are subject to Required Minimum Distributions (RMDs) beginning at the applicable IRS age. Failure to take required distributions may result in IRS penalties.

Important Tax Reminder

Please consult with your tax professional to understand the overall tax implications of an early Traditional IRA withdrawal based on your specific situation.
 

Source: Internal Revenue Service (IRS) – Traditional IRAs, Publication 590‑B, Exceptions to Early Distribution Penalties