When are distributions from Roth IRAs tax free?

Distributions of investment earnings are tax-free provided they satisfy a 5-year holding period and at least one of the following: 
  • owner attains age 59½
  • owner's death or disability
  • used for qualified first-time home purchase ($10,000 max)
If the 5-year holding period is not met, any investment earnings withdrawn are subject to a 10% penalty tax. If the 5-year holding period is met, but none of the conditions are met, the same income taxation and 10% penalty apply. Contributions to a Roth IRA may be withdrawn at any time without being taxed or incurring a penalty. 

Feedback and Knowledge Base

Speak With An Associate



Business Hours

8 a.m. to 7 p.m. (Eastern time)


Phone

(785) 438-3000
(800) 888-2461


Fax

(785) 368-1772


Mailing Address

Security Benefit
One Security Benefit Place
Topeka, KS 66636


Overnight Mailing Address

Security Benefit
Mail Zone 500
One Security Benefit Place
Topeka, KS 66636-0001