Can I take out money from my Roth for a First home? I opened the roth in 2005.?

Question

I am purchasing my first home, and was told I can access the money in my roth penalty free. It has only been there since 2005. I read some were it has to be in for 5? What is the penalty. Thank you!

Answer 1

You can only take out your contributions now.  If it had been open 5 years, you could take up to $10,000 to buy a first home even though you are under 59 1/2.

This shows why opening a Roth at 16 (if working) is a good idea.  Then it is accessible for a first home purchase as early as age 21.

Answer 2

Hi, your sources are correct.  You can take our what you originally put in any time without penalty.  If you take out earnings ( i.e., any gains or dividends) before 59 1/2 then, that portion is taxable as ordinary income.