Implications of withdrawing Roth IRA contributions before age 59?

Question

What repercussions, penalties, fees, or additional taxes exist on withdrawing contributions (basis) from a Roth IRA account under 59 years old?

For example, suppose I have contributed $5,500 for 5 years for a total of $27,500 of contributions plus another $5,000 of earnings (i.e., total value of account is $32,500).

Reading the IRS page makes me think I can withdraw contributions from a Roth IRA account tax free, penalty free, under age 59.

Can I withdraw up to $27,500 without any fees/penalties/taxes/implications?

Answer 1

Can I withdraw up to $27,500 without any fees/penalties/taxes/implications?

Absolutely.

For the details see Form 8606 - Nondeductible IRAs, which you'd file if you took a Roth IRA distribution. In Part III, line 22, you enter your basis in Roth IRA contributions. If it's more than what you withdrew (line 19), the taxable amount would be zero, and no penalties would apply.