Roth IRA early withdrawal

[Kana]

I'm trying to withdraw my Roth IRA. I do not have a taxable income anymore and there is no reason for me to have it. I have switched the investor in 2019 so it hasn't been 5 years though I just purchased a home in 2019 and I am permanently and completely disabled.

I spoke to the agent there (TD Ameritrade) and here's what she told me

So a couple of options. If you want to fully withdraw and send the funds to your bank, you'd have to liquidate the mutual fund in the Roth. That's where majority of the funds are tied up right now. Then once it settles in cash, just make a full distribution to your bank.

Otherwise, you can just distribute the fund and cash as a whole and move it into the individual account. Keep in mind that either of those options may come with tax consequences since it would be an early distribution. You may want to seek advice from a licensed tax professional to determine what might be the best option for your situation

I don't know what else to do. Please let me know. Thank you.

[macuser_22]

"Switch  the investor"   -  do you mean move the Roth form one financial institution to another?  That does not start a new 5 year clock.  The 5 years starts when the first Roth account is created.

If you are over age 59 1/2 or permanently and totally disabled then there is no early distribution penalty.   Removing your own contributions are never subject to any tax, only the earnings might be.

[Anonymous]

Any distribution from a Roth IRA shall not be includible in gross income.

if it is 

1) attributable to the individual’s being disabled (within the meaning of section 72(m)(7), or

2) which is a qualified special purpose distribution section 72(t)(2). 

72(m)(7)Meaning of disabled

For purposes of this section, an individual shall be considered to be disabled if he is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or to be of long-continued and indefinite duration. An individual shall not be considered to be disabled unless he furnishes proof of the existence thereof in such form and manner as the Secretary may require.

72(t)(2)(F)

Distributions from certain plans for first home purchases
Distributions to an individual from an individual retirement plan which are qualified first-time homebuyer distributions (as defined in paragraph (8)). Distributions shall not be taken into account under the preceding sentence if such distributions are described in subparagraph (A), (C), (D), or (E) or to the extent paragraph (1) does not apply to such distributions by reason of subparagraph (B).

paragraph 8

(8)Qualified first-time homebuyer distributionsFor purposes of paragraph (2)(F)—
(A)In general
The term “qualified first-time homebuyer distribution” means any payment or distribution received by an individual to the extent such payment or distribution is used by the individual before the close of the 120th day after the day on which such payment or distribution is received to pay qualified acquisition costs with respect to a principal residence of a first-time homebuyer who is such individual, the spouse of such individual, or any child, grandchild, or ancestor of such individual or the individual’s spouse.

(B)Lifetime dollar limitationThe aggregate amount of payments or distributions received by an individual which may be treated as qualified first-time homebuyer distributions for any taxable year shall not exceed the excess (if any) of—
(i)$10,000, over
(ii)the aggregate amounts treated as qualified first-time homebuyer distributions with respect to such individual for all prior taxable years.
(C)Qualified acquisition costs
For purposes of this paragraph, the term “qualified acquisition costs” means the costs of acquiring, constructing, or reconstructing a residence. Such term includes any usual or reasonable settlement, financing, or other closing costs.

(D)First-time homebuyer; other definitionsFor purposes of this paragraph—
(i)First-time homebuyerThe term “first-time homebuyer” means any individual if—
(I)such individual (and if married, such individual’s spouse) had no present ownership interest in a principal residence during the 2-year period ending on the date of acquisition of the principal residence to which this paragraph applies, and
(II)subsection (h) or (k) of section 1034 [4] (as in effect on the day before the date of the enactment of this paragraph) did not suspend the running of any period of time specified in section 1034 [4] (as so in effect) with respect to such individual on the day before the date the distribution is applied pursuant to subparagraph (A).
(ii)Principal residence
The term “principal residence” has the same meaning as when used in section 121.

(iii)Date of acquisitionThe term “date of acquisition” means the date—
(I)on which a binding contract to acquire the principal residence to which subparagraph (A) applies is entered into, or
(II)on which construction or reconstruction of such a principal residence is commenced.