How to Withdraw Money From a Roth IRA Before 59
- 1). Request a withdrawal from your Roth IRA from your financial institution. Each bank has its own request form. No bank can deny your distribution simply because you are 59 or younger.
- 2). Complete form 8606 to figure out how much of your distribution came from contributions versus earnings. The IRS rules permit you to withdraw all of your contributions before you take out any of your earnings. If your withdrawal includes only contributions, you can skip to step 4.
- 3). Compute your early withdrawal penalty on the earnings portion of your Roth IRA withdrawal using Form 5329, Part I. If you have a special exception, such as college expenses or a permanent disability, you must report it on the Form 5329 to avoid the penalty. Otherwise, you will have to pay a 10 percent on the earnings portion.
- 4). Report the Roth IRA withdrawal on your income taxes using Form 1040. The nontaxable portion gets reported on line 15a and the taxable portion gets listed on line 15b. If you owe a penalty, you must include it on line 58.
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