However, assuming that the contribution for 2016 was your first Roth IRA contribution, if you withdraw any investment gains, which come out last, prior to 2021 when your Roth IRA(s) become qualified because you are over age 59½ and it will be more than 5 years after the beginning of 2016, the distributed gains will be taxable as ordinary income even though they are not subject to any early-distribution penalty. Any distribution that you receive prior to 2021 must be reported on Form 8606 to determine the taxable amount.
