I know there is a penalty if I withdraw if I'm under 59 years old. But was there a new law that took effect to let us sell and withdraw from our ROTH IRA without a penalty or tax liability?

  • 1. Are you withdrawing more than your contributions (i.e. put in $5K but now worth $10K and you want to take out $10K) 2. Have you held the Roth IRA for more than 5 years? Commented May 14, 2020 at 17:41
  • "I know there is a penalty if I withdraw if I'm under 59 years old." If you are withdrawing from your Roth IRA an amount less than the your total contributions so far, there is never any tax or penalty, regardless of how old you are or how long you have had a Roth IRA.
    – user102008
    Commented May 14, 2020 at 18:03
  • yea my 5k is now 10k. if i withdraw the 10k, is there a penalty? so if i just withdraw 5k and leave the other 5k there is ok? Commented May 14, 2020 at 21:49
  • @Patoshiパトシ Anything above 5k (your contribution) would normally have penalty/taxes from a Roth IRA so the COVID rules/adjustments would apply. Still agree with others that you should consider carefully as you may not be able to "redeposit" back in. I would check with your IRA custodian. Commented May 15, 2020 at 2:46
  • why do you want to withdraw the money? The reason for the withdraw may be key to getting a good answer? Commented May 15, 2020 at 12:31

1 Answer 1


The new law only allows you to withdraw from your IRA without penalty if the money is used for COVID-related needs.

Specifically, the legislation restricts relief to qualified participants with a valid COVID-19 related reason for early access to retirement funds. These include:

Being diagnosed with COVID-19

Having a spouse or dependent diagnosed with COVID-19

Experiencing a layoff, furlough, reduction in hours, or inability to work due to COVID-19 or lack of childcare because of COVID-19

Source: https://www.forbes.com/advisor/retirement/cares-act-retirement-account-rules-covid-19/

  • Is ROTH IRA considered the same as a IRA and 401k IRA, 401k? Commented May 14, 2020 at 17:21
  • You should probably go do some more basic research (there's tons out there, don't rely on people spoonfeeding you) if you're going to even think about messing around with a retirement account before you actually retire. The question you pose makes it very clear you don't have any understanding of the most basic information about your account(s). Not trying to be rude, just don't want people to make mistakes that may cost $$$
    – Havegooda
    Commented May 14, 2020 at 19:41

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