You'll never pay taxes on withdrawals of your Roth

You'll never pay taxes on withdrawals of your Roth IRA contributions. And you won't pay taxes on withdrawals of your earnings as long as you take them after you've reached age 59½ and you've met the 5-year-holding-period requirement.

Withdrawals before age 59½

Withdrawals of Roth IRA contributions are always both tax-free and penalty-free. But if you’re under age 59½ and your withdrawal dips into your earnings—in other words, if you withdraw more than you've contributed in total—you could be subject to both taxes and penalties on the earnings portion of the withdrawal.

Withdrawals of your traditional IRA contributions before age 59½ will result in a 10% federal penalty tax plus regular income tax on the entire withdrawal.

See if you qualify for an exception

Withdrawals between ages 59½ & 70½

Restrictions relax at age 59½, and you can withdraw from a Roth or traditional IRA penalty-free for the most part.

In addition, with a Roth IRA, you'll pay no taxes on withdrawals, provided your account has been open for at least 5 years.*

With a traditional IRA, you'll owe taxes on the withdrawals of all earnings and any contributions you originally deducted from your taxes.

But remember: Turning 59½ doesn't mean you have to start withdrawing your money.

Withdrawals at age 70½ & older

If you own a Roth IRA, there's no mandatory withdrawal at any age.

But if you own a traditional IRA, you must take your first required minimum distribution (RMD) by April 1 of the year following the year you reach age 70½. For each subsequent year, you must take your RMD by December 31. The RMD amount is based on your life expectancy and the value of your account.