Roth IRA withdrawal rules: What you need to know in 2026

Retirement rules are changing in 2026. Under the SECURE 2.0 Act of 2022, certain high earners now have to make catch-up contributions to workplace retirement plans as Roth contributions rather than pre-tax contributions. IRA contribution limits also rose to $7,500, or $8,600 if you’re 50 or older, while the Roth IRA income phase-out range for single filers increased to $153,000 to $168,000 ($242,000 to $252,000 for married couples filing jointly).

These changes don’t alter Roth IRA withdrawal rules, but knowing how those rules work helps you plan ahead as you get closer to retirement. You generally can withdraw your Roth IRA contributions at any time without income tax or a 10% early withdrawal penalty. Earnings work differently. Whether you owe tax or penalties on earnings depends on factors like your age and how long you’ve had a Roth IRA.

Here, you’ll learn about Roth IRA withdrawal rules, including contributions, conversions, earnings, the five-year rule and early withdrawal exceptions. You’ll also see what the latest changes could mean for how your Roth IRA fits into your financial plan.

Unlike traditional IRAs, Roth IRA withdrawals can be tax- and penalty-free, but the rules depend on what type of money you withdraw and when. The IRS has three categories for the money in your Roth IRA: contributions, converted amounts and earnings.

Contributions are after-tax dollars you’ve added to your account. Because you’ve already paid taxes on this money, you generally can withdraw contributions at any time without taxes or penalties. Contributions are after-tax dollars you’ve added to your account. Because you’ve already paid taxes on this money, you generally can withdraw contributions at any time without taxes or penalties.

Converted amounts are money you’ve moved from a traditional IRA or eligible workplace plan into a Roth IRA. While taxes generally are paid when you convert the money, a 10% early withdrawal penalty may apply if you withdraw converted funds before satisfying the applicable five-year rule.

Earnings are the investment growth in your Roth IRA. Generally, you can withdraw your earnings tax-free once you’re 59½ or older and at least five tax years have passed since your first Roth IRA contribution. Otherwise, earnings may be considered nonqualified and subject to income tax and a 10% early withdrawal penalty.

Yes. Unlike traditional IRAs, Roth IRA contributions are made with after-tax dollars. As a result, the IRS does not tax you again when you withdraw those same funds, and you generally can withdraw them at any time without a 10% early withdrawal penalty.

For example, if you contributed $6,000 to a Roth IRA and later decided to withdraw that same $6,000, you wouldn’t have to deal with income taxes or the 10% early withdrawal penalty, regardless of your age or how long you’ve had the account.

This flexibility applies specifically to contributions. Different tax and penalty rules may apply to converted funds and earnings.

Roth IRA withdrawal rules at a glance

The Roth IRA five-year rule actually refers to two separate rules.

The first five-year rule applies to earnings. Your five-year clock starts on Jan. 1 of the tax year you make your first Roth IRA contribution, not the day you actually deposit the money. So, if you contribute in February 2026 for the 2025 tax year, your clock dates back to Jan. 1, 2025. That’s because you generally have until the tax-filing deadline to make an IRA contribution for the previous year.

Roth conversions work a little differently. Each conversion gets its own five-year clock, starting on Jan. 1 of the year you make it. Say you convert a few thousand dollars from a traditional IRA to a Roth IRA in February 2026. Your clock starts on Jan. 1, 2026. If you make another conversion in 2028, a new five-year clock starts on Jan. 1, 2028.

Unlike Roth IRA contributions, Roth conversions can't be designated for a previous tax year.

Whether your Roth IRA withdrawal is qualified or nonqualified determines how the IRS treats it. Here’s the difference.

A qualified distribution is a tax-free withdrawal from your Roth IRA. To qualify, you need to meet the five-year rule plus at least one of these conditions:

• You’re age 59½ or older
• You have a disability
• You’re using the funds for a first home purchase (up to limits)
• You’re taking a distribution as a beneficiary

If you meet one of those conditions but haven’t met the five-year rule, your withdrawal isn’t a qualified distribution.

A nonqualified distribution is simply one that doesn’t meet all the requirements above. If you withdraw earnings as part of a nonqualified distribution, you may owe ordinary income tax and potentially a 10% early withdrawal penalty.

When you withdraw money from a Roth IRA, the IRS treats it as coming out in a specific order: contributions → conversions → earnings.

1. Contributions: Your direct contributions come out first. Because you already paid taxes on them, you can withdraw them anytime tax- and penalty-free, regardless of how much your account has grown.
2. Conversions: Converted funds come out next, with the oldest conversions withdrawn first. A 10% penalty may apply if a conversion is withdrawn before satisfying its five-year rule.
3. Earnings: Investment earnings come out last and may be taxable or subject to penalties if the withdrawal isn't qualified.

Knowing the withdrawal order can help you avoid losing money. Because your contributions come out first, you can withdraw up to the amount you’ve contributed before dipping into conversions or earnings, which may trigger taxes or penalties if withdrawn too early.

While a qualified distribution is a withdrawal that is completely tax-free and penalty-free because it meets both requirements, an early withdrawal penalty exception is slightly different. A qualified exception may allow you to avoid the 10% penalty on an early withdrawal, but it does not necessarily make the withdrawal tax-free.

Common exceptions include:

• First-time home purchase (up to $10,000 lifetime)
• Disability
• Health insurance premiums while unemployed
• IRS levy on the account
• Qualified birth or adoption expenses
• Qualified education expenses
• Unreimbursed medical expenses that meet IRS requirements

The SECURE 2.0 Act also added a few other exceptions, including:

• Financial assistance for domestic violence survivors
• Federally declared weather disasters (e.g., earthquakes, floods, hurricanes, tornadoes, wildfires)
• Emergency expense withdrawal of up to $1,000 per year
• Terminal illness

If you’re not sure whether your withdrawal request meets the Roth IRA qualified distributions or qualified exceptions, a financial advisor can help you before you take money out. You also can double-check the most recent IRA withdrawal rules.

When you’re nearing retirement, deciding when to take money out of your Roth IRA depends on your income, tax situation and the other accounts you have available. You may want to use taxable accounts first, delay traditional retirement account withdrawals or tap Roth funds strategically.

The order you choose makes a difference. Leaving money in your Roth IRA gives it more time to grow tax-free, while qualified Roth withdrawals can give you a source of tax-free income when you need it. That flexibility can be useful when you’re balancing withdrawals from taxable, tax-deferred and Roth accounts throughout retirement.

There’s a tradeoff, though. Money you withdraw today loses the opportunity for future tax-free growth. Before taking money out, consider what you need now as well as how the withdrawal could affect your income and savings later in retirement.

One benefit of a Roth IRA is that you don’t have to take RMDs during your lifetime. That’s because you’ve already paid income taxes on the money you contributed.

With traditional IRAs, RMDs generally begin at age 73, rising to 75 for people born in 1960 or later. Without that requirement, you have more flexibility with a Roth IRA. You can leave your money where it is, tap it when you need it or coordinate withdrawals with your other accounts to help manage your taxable income in retirement.

There is one important distinction: inherited Roth IRAs follow different rules. If you’re planning on leaving your Roth IRA to a beneficiary, consider giving them a heads up that they may have to take distributions after they inherit the account.

While the core Roth IRA rules remain the same, 2026 brought higher contribution limits, updated income eligibility thresholds and a new Roth-related rule for some workplace retirement plans.

The IRS increased the annual IRA contribution limit for 2026, so you can set aside more for retirement. If you’re under age 50, you can contribute up to $7,500. If you’re 50 or older, your options are a little higher at $8,600, thanks to a larger catch-up contribution.

IRA contribution limits at a glance

For additional details on 2026 retirement plan limits, see IRS Notice 2025-71.

For single filers, the Roth IRA contribution phase-out range increased to $153,000 to $168,000 in modified adjusted gross income (MAGI). For married couples filing jointly, the range is $242,000 to $252,000. If your income falls within that range, the amount you can contribute is gradually reduced. Once your income exceeds the upper limit, you no longer can make a direct Roth IRA contribution for the year.

As of the beginning of 2026, if you earned more than $150,000 in FICA wages from your employer in the previous year, you generally must make any catch-up contributions to your workplace retirement plan as Roth contributions rather than pre-tax contributions.

This change applies to 401(k), 403(b) and governmental 457(b) plans, not Roth IRAs. So, while the new rule may have you thinking more about Roth accounts, it doesn’t change how your Roth IRA withdrawals work.

The same goes for the other 2026 updates: The fundamental rules for withdrawing contributions, conversions and earnings from your Roth IRA haven’t changed. But the updates may affect how you use Roth accounts as part of your broader long-term retirement strategy.

A Roth IRA can give you plenty of flexibility in retirement. To withdraw earnings tax-free, though, you generally need to meet the five-year requirement plus a qualifying condition, such as reaching age 59½. Contributions, conversions and earnings also follow different withdrawal rules, so knowing which dollars you're withdrawing, and when, can help you avoid unnecessary income taxes or early withdrawal penalties.

Your Roth IRA also can give you options when you’re deciding which accounts to tap throughout retirement. Qualified withdrawals are tax-free, and you don’t have to take RMDs during your lifetime. At the same time, leaving money in your Roth IRA gives it more time for potential tax-free growth.

Before taking money out, look at your Roth IRA as part of your broader withdrawal strategy. Consider what you need now, which other accounts you can draw from and how your choices could affect your taxes and savings later in retirement.

If you're still unsure about whether a Roth IRA makes sense for your retirement plan goals, a Thrivent financial advisor can help you build a withdrawal strategy around them.