Roth IRA to pay Student Loan Debt

[rvotroub]

I started a Roth 403B with my employer in 2016. I opened a personal Roth IRA account in 2022. I left my employer in 2023 and rolled my Roth 403B into my personal Roth IRA. I am currently under the age of 59 years old, enrolled in school with an anticipated graduation in May 2025, and utilizing student loans to cover my educational costs. I know I can withdraw my contributions to pay my student loans without penalty. At what point would I be able to withdraw earnings from my Roth IRA to pay my student loan debt without penalty? 

[Bsch4477]

To withdraw earnings from your Roth IRA without penalty to pay off student loan debt, you must be at least 59.5 years old and have had the account open for at least five years. 

[dmertz · Accepted solution]

The penalty ends at age 59½ without regard to how long the participant has had a Roth IRA.  However, both requirements must be met to make the distribution a qualified distribution where the earnings are also free of income tax.

[Opus 17]

Below age 59-1/2, earnings are subject to income tax and a 10% penalty.

To withdraw earnings without penalty, you need to be over age 59-1/2.  To withdraw earnings without income tax, you need to be over age 59-1/2 and it must be 5 years since you opened your first Roth IRA (the Roth 403b does not start this clock running, since a 403b and IRA are governed by different sections of the tax law.)