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If the 5-year holding period is not met, any investment earnings withdrawn are subject to a 10% penalty tax.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 Contributions to a Roth IRA may be withdrawn at any time without being taxed or incurring a penalty.