Withdrawals Over 59½

• If you withdraw funds from an IRA after you reach 59½, you may do so tax- and penalty-free if the account has been open for at least five years. This applies whether the account is converted to a Roth from a Traditional IRA or was originally opened as a Roth.
  
  

Other Withdrawal Rules

• It is also possible to withdraw funds tax- and penalty-free if you are younger than 59½, if you have held the funds for at least five years and need them due to a disability or for a qualified first-time home purchase. If you die, withdrawals to your estate would be tax-free as well, as long as the five-year period has been met.
  
  

Exceptions to the Penalty

• Under some circumstances, you may withdraw funds without meeting the rules previously mentioned and still not face a penalty. However, income tax on the earnings would still apply. Taxes are never paid on the contribution amount in a Roth IRA. You may be excepted from the penalty if you take a series of substantially equal payments from the Roth. These payments must occur for a minimum of five years, or until you turn 59½, whichever is longer. You can also request a penalty waiver if you have medical expenses that are not covered by insurance, or you need the funds to pay medical insurance premiums if you are unemployed.
  
  

Order of Withdrawn Funds

• Withdrawals are automatically taken from your account in a certain order, to minimize the tax implications for you. When you make a withdrawal, your contributions are taken first. This is because they are not taxed in any way. Second is conversion and rollover contributions, for the same reason. Only after those sources are exhausted are earnings removed, which you must pay taxes and penalties on, if applicable.