Roth IRA

[zmolekms]

Is there a yearly maximum that I can withdraw from Roth IRAs without paying taxes or penalties?

[Opus 17 · Accepted solution]

Withdrawals are always taken in the order of contributions first, conversions second, and earnings last.

Contributions can always be withdrawn tax-free no matter your age.

If conversions are withdrawn less than 5 years after the conversion AND you are under age 59-1/2, there is a 10% penalty for early withdrawal.

If earning are withdrawn and you are less than age 59-1/2, OR you are any age but it has been less than 5 years since you opened your first Roth IRA, the earnings are taxable, plus a 10% penalty for early withdrawal if under age 59-1/2.

If you are over age 59-1/2 and it has been more than 5 years since you opened your first Roth IRA, all withdrawals are always tax-free.  There is no annual limit.