If own a Roth IRA, how soon can I withdraw my money? Robert 'Bob' Powell answers this question as part of Decoding Retirement's special segment, Ask Bob.

Powell was joined by award-winning author and retirement expert, Anne Lester, on the debut episode of Decoding Retirement to break down Roth IRAs and much more.

Question:

I first opened a Roth IRA in 2020. I have since put money in the Roth in 2021, 2022, and 2023. I understand you have to wait five years before you can begin withdrawal without any taxes, principal and gains. Based on this I can take out my 2020 money in 2025? Correct? When can I withdraw my 2021 money? 2025 also or is it five years from when money went into account? So, 2021 I can withdraw in 2026, 2022 in 2027 and so on? Or is all money available for withdrawal beginning in 2025?

Answer:

You can receive the earnings on all of your Roth IRA contributions tax-free once you satisfy a five-year holding period and you are over age 59 ?. The five-year period starts on January 1 of the year you first fund any Roth IRA. Since you opened your first Roth IRA in 2020, your five-year period ends on 12/31/24. So, all of your Roth funds are available tax-free starting in 2025. Since you’re over 59 ?, there also won’t be a penalty, according to Ian Berger, an IRA analyst with Ed Slott & Company.

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Yahoo Finance's Decoding Retirement is hosted by Robert Powell, and produced by Zach Faulds and Alexander Frangeskides.

Find more episodes of Decoding Retirement at https://www.cerveza-artesanal.com/videos/series/decoding-retirement.

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Editor's note: This post was written by Zach Faulds.