Does Roth withdrawal count as income in the Capital Gains tax equation?

[annh89]

In 2025, Husband and wife (MFJ) will sell home and build a new home.  The profit will be less than $500K.  If we withdraw funds from our Roth IRA to fund building the new home,  will that withdrawal count as income on our tax return - thus affecting our eligibility for zero Capital Gains tax on the sale of our home? 

[DoninGA]

You must be 59 ½ and have held your Roth IRA for at least five years before you withdraw investment earnings tax-free and penalty-free. You can withdraw your Roth IRA contributions at any age because you've already paid taxes on that money.

[fanfare]

If you take out no more than you contributed to the Roth IRA, that is a return of principal, not income.

@annh89