10% withdrawal penalty and taxes apply
The penalty may be waived for:
- Unreimbursed medical expenses
- Higher education expenses
- First-time home purchase (up to $10,000)
No withdrawal penalty but taxes apply
- Withdraw money penalty-free when you turn 59½.
- Withdrawals are taxed as ordinary income.
- Mandatory withdrawal at age 70½.
Annual withdrawal required and taxes apply
- Annual withdrawals are called Required Minimum Distributions (RMDs) and are taxed as ordinary income.
- A 50% penalty applies if you don’t take an RMD.
See more details about: Roth IRA withdrawals | Inherited IRA withdrawal rules
This tax information is not intended to be a substitute for specific individualized tax, legal, or investment planning advice. Where specific advice is necessary or appropriate, Schwab recommends that you consult with a qualified tax advisor, CPA, financial planner, or investment manager.