[USER]

Is it correct that you can take out your Roth IRA Contributions at any time as long as the account has been open 5 years?

You can’t touch the growth before age 59.5, but you can access all original contributions?

Seeking clarification because I just had my 18 year old open his Roth account and I want to make sure this is the best path for someone just starting out and motivated to learn.

[Cody]

The “open 5 years” rule only applies to earnings, not direct Roth IRA contributions.

So yes, the original contributions can be withdrawn tax- and penalty-free at any age for any reason.

[William]

In fact you can pull contributions out even before the account is 5 years old. Technically the early distribution triggers the early withdrawal penalty, but for a Roth IRA, the penalty is calculated against the growth portion.

If you’re only pulling contributions (which is easy because Roth distributions are ordered), then the penalty is triggered, but with a distribution no growth portion withdrawn, the penalty would be $0.00.

[Rick]

Tiny terminology nit, but doesn’t matter much as it wasn’t your question. The initial 5 year account open rule is A not THE account.
We can open a Roth IRA and fund it with a tiny amount.

Later open another Roth ira elsewhere.

The initial 5 year rule is determined against the original Roth IRA opened and not the Roth IRA of the specific withdrawal.

[Jason]

Contributions can be taken out at any time at any age, no 5-yr requirement.

But don’t

[Author]

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