Hello. Will I be liable for additional tax if I withdraw my Roth IRA contributions to pay off my student loans?

[dmertz · Accepted solution]

You can withdraw your Roth IRA contributions without tax or penalty at any time for any reason.  If you withdraw earnings before age 59½, they will be subject to ordinary income tax and, unless a penalty exception applies, to a 10% early-distribution penalty.  Using the fund to paying off student loans is not an exception to the early-distribution penalty.

[NCperson]

@marcoppb to be clear those words "CONTRIBUTION" and "EARNINGS" have specific meanings in a ROTH IRA. 

The IRS presumes that you distribute all the CONTRIBUTIONS before any EARNINGS.   

So if you distribute less than the CONTRIBUTIONS, there is no tax or penalties, because you are only distributing CONTRIBUTIONS. 

However, if you distribute more than your contributed (and assuming no conversions from an IRA), these would be EARNINGs and MAY BE subject to ordinary income tax (depends on your age and the number of years the Roth has been opened); it will be subject to a 10% penalty if you are under 59.5 years old.