A Roth IRA owner must be at least what age in order to make tax-free withdrawals, provided the account has been owned for the required period?

• A. 59 1/2 and 5 years
• B. 59 1/2 and 3 years
• C. 60 and 5 years
• D. 55 and 5 years

Answer: (A)

To take tax-free withdrawals of earnings from a Roth IRA, the distribution must be qualified: you must be at least 59½ years old and the account must have been open for at least five years. The five-year period begins with the first year you contributed to any Roth IRA, and it must be satisfied before earnings can come out tax-free. You can always withdraw your contributions (the principal) tax-free since those contributions were made with after-tax dollars, but the earnings portion follows the age and five-year rules. If you withdraw earnings before meeting both requirements, the earnings may be taxable and subject to a 10% early‑withdrawal penalty, with some exceptions such as disability, death, or a first-time home purchase.