How to Take Money Out of a Roth IRA
You've spent years contributing money to your Roth Individual Retirement Account (IRA) and have watched your account value grow. Now you've reached retirement and want to start drawing on that money. Because it's a Roth IRA, the money will most likely be tax free, but it's up to you to make sure that you make qualified withdrawals.
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Instructions
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Take qualified distributions. This means you need to wait until you are age 59.5 and the account has been open for at least five years.
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Use the money for school or a new home. You can avoid early withdrawal penalties if you use Roth IRA withdrawals for school costs or to purchase a first home (up to $10,000).
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Take a hardship withdrawal. The IRS allows you to withdrawal money from your Roth IRA is you need to pay excessive medical expenses, to pay for medical insurance while you're unemployed, become disabled or the money is part of an inherited Roth IRA.
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Withdraw up to the amount you have contributed if taking an early withdrawal. Because you have already been taxed on your contributions, you won't be taxed or penalized on them again even if you are taking an unqualified withdrawal.
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Take as much money as you want if you are making a qualified distribution. Once you meet the requirements for a qualified distribution, you can take as much money out of the account as you want. However, it's more advisable to take out just what you need and allow the balance to continue growing tax free.
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