You can open a Roth IRA at any age, but withdrawal rules depend on whether you're taking out contributions or earnings

A Roth IRA has no age minimum to open one. A parent can open a Roth for a child with earned income, and a teenager can open their own. The age restriction comes later: you can withdraw your own contributions (the money you put in) at any time, tax-free and penalty-free. But withdrawing the earnings (investment gains) before age 59½ typically triggers a 10% penalty plus income tax, unless you meet a narrow exception.

The key distinction is between contributions and earnings. If you put $3,000 into a Roth and it grows to $4,000, you can pull out the $3,000 anytime. The $1,000 in gains stays locked until 59½ unless you may have access to for an exception like a first-time home purchase (up to $10,000 lifetime) or a Roth conversion exception.

Key Takeaways

  • You can open a Roth IRA at any age if you have earned income, and a parent can open one for a child who earns money.
  • Contributions (money you deposit) can be withdrawn at any age without penalty or tax.
  • Earnings (investment gains) withdrawn before age 59½ are taxed as income and hit with a 10% penalty unless you meet a specific exception.
  • The five-year rule requires that a Roth account be open for at least five tax years before you can withdraw earnings penalty-free at 59½, even if you opened it at age 58.

Opening a Roth IRA as a Minor or Young Adult

There is no age floor to open a Roth IRA. A 16-year-old with a part-time job can open one. A 10-year-old with income from a modeling contract or family business can open one. The only requirement is earned income — money from wages, self-employment, or modeling, not investment returns or allowance.

If you are under 18, a parent or guardian typically must co-sign or open the account as a custodial Roth IRA. The parent controls the account until you reach the age of majority (usually 18 or 21, depending on your state and the brokerage). After that, the account is yours to manage. The earlier you start, the more time compound growth has to work in your favor.

Withdrawing Contributions Before Age 59½

Your contributions are always yours to withdraw, at any age, without penalty or tax. This is one of the Roth IRA's biggest advantages over a traditional IRA. If you deposited $5,000 at age 25 and now you're 35, you can withdraw that $5,000 with no strings attached.

The brokerage holding your Roth will let you withdraw contributions without asking questions. You simply request the withdrawal, and the money moves to your bank account. The only catch: you cannot re-deposit that money into the same Roth in the same year without running into contribution limits. If you withdraw $5,000 and want to put it back, you'll need to wait until the next calendar year.

Withdrawing Earnings Before Age 59½

Earnings are the investment gains inside the account — dividends, capital gains, interest. Withdraw them before 59½ and you owe income tax on the amount plus a 10% early withdrawal penalty. If your Roth has $10,000 in contributions and $3,000 in earnings, and you withdraw all $13,000 at age 40, you'll owe tax and penalty on the $3,000 in earnings.

The IRS does allow a few exceptions to this penalty. The most common is a first-time home purchase, which lets you withdraw up to $10,000 in lifetime earnings penalty-free (though you still owe income tax). Other exceptions include disability, medical expenses above 7.5% of adjusted gross income, and substantially equal periodic payments under a specific formula. These exceptions are narrow and require documentation.

The Five-Year Rule for Earnings

Even if you reach 59½, you cannot withdraw earnings penalty-free unless your Roth has been open for at least five tax years. This is the five-year rule, and it applies separately to each Roth account you own. If you open a Roth at age 58, you cannot touch the earnings penalty-free until age 63, even though you're past 59½.

The five-year clock starts on January 1 of the year you open the account. If you open a Roth on December 15, 2024, the five-year period runs through December 31, 2029. After that, at 59½, earnings are yours penalty-free. If you convert a traditional IRA to a Roth, a separate five-year rule applies to the converted amount, and it can be more complex depending on whether you've done other conversions.

Roth Conversions and Age Limits

A Roth conversion lets you move money from a traditional IRA or 401(k) into a Roth. There is no age limit on conversions — you can do one at 70, 80, or any age. You will owe income tax on the converted amount in the year you convert, but once it's in the Roth, the five-year rule applies to that specific conversion.

Conversions are useful for people who expect to be in a lower tax bracket in a given year, or who want to move money into a tax-free account before required minimum distributions kick in at age 73 (for traditional IRAs). The conversion itself is not a withdrawal, so it does not trigger the early withdrawal penalty. However, if you then withdraw the converted amount within five years, you may owe a penalty on the earnings portion of that conversion.

Required Minimum Distributions and Age 73

Unlike a traditional IRA, a Roth IRA has no required minimum distributions during your lifetime. You can leave the money untouched until age 100 if you want. This is a major tax advantage: your money keeps growing tax-free, and you decide when to take it out.

Your beneficiaries, however, do face distribution rules after you die. The rules depend on whether they are spouses or non-spouses, and whether you die before or after age 73. A spouse can treat the inherited Roth as their own. A non-spouse beneficiary generally must empty the account within ten years of your death, though they can spread withdrawals across those ten years.

Frequently Asked Questions

Can a child with a summer job open a Roth IRA?

Yes. If the child has earned income from a job, they can open a Roth. A parent usually opens a custodial Roth on their behalf. The child can contribute up to the amount of their earned income that year, capped at the annual limit (currently $7,000 for those under 50).

What happens if I withdraw earnings before 59½ and don't may have access to for an exception?

You owe income tax on the earnings at your ordinary tax rate, plus a 10% penalty. If you withdraw $3,000 in earnings and you're in the 22% tax bracket, you'll owe roughly $660 in tax plus $300 in penalty, totaling $960. The exact amount depends on your tax bracket and state taxes.

Can I withdraw contributions from a Roth conversion?

Yes, but it's complicated. Contributions from a conversion are subject to the five-year rule. If you convert $10,000 and withdraw it within five years, the IRS treats the withdrawal as coming from the conversion first, and you may owe a penalty on the earnings portion of that conversion. Consult a tax professional before withdrawing from a recent conversion.

Do I have to be 59½ to withdraw contributions?

No. Contributions can be withdrawn at any age, penalty-free and tax-free. Only earnings are restricted by the 59½ age rule and the five-year rule.

What if I need money before 59½ but don't may have access to for an exception?

Withdraw your contributions, not your earnings. Your contributions are always available. If you need more than your contributions, you'll have to pay tax and penalty on the earnings, or find another source of funds. This is why many people keep an emergency fund separate from retirement accounts.