When and how you can take money out
Withdrawal rules for 401k and Roth IRA accounts in 2026, including the early penalty, exceptions, the Rule of 55, RMDs at 73, and the new SECURE 2.0 emergency provisions.
Withdrawal rules side by side
| Rule | 401k | Roth IRA |
|---|---|---|
| Penalty free age | 59.5 (or 55 if separated) | 59.5 for earnings; contributions any time |
| Tax on withdrawal | Ordinary income on full amount | Tax free if qualified; contributions always tax free |
| Five year rule | Not applicable | Required for tax free earnings withdrawals |
| 10 percent early penalty | Yes, before 59.5 (with exceptions) | On earnings only, before 59.5 |
| Required minimum distributions | Begin at 73 | None for owner; 10 year rule for inherited |
| Loan provisions | Up to 50 percent of balance, $50,000 cap | Not allowed; contributions are accessible |
| Hardship withdrawals | Permitted under plan rules | Not relevant; contributions accessible |
| SECURE 2.0 emergency withdrawal | Up to $1,000 per year, repayable | Up to $1,000 per year, repayable |
Why Roth contributions are always accessible
The IRS uses a strict ordering rule for Roth IRA withdrawals. Contributions come out first, then conversions (oldest first), then earnings. Since contributions were already taxed, there is no tax or penalty on that bucket.
Contributions
Withdrawn first, tax free and penalty free at any age. The full contribution history adds up across all your Roth IRA accounts.
Conversions
Withdrawn second, oldest conversions first. Each conversion has its own 5 year clock for the 10 percent penalty (not for tax).
Earnings
Withdrawn last. Tax free and penalty free only after 5 years and age 59.5 (or another qualifying event). Otherwise both apply.
Ten paths to penalty free early access
When RMDs begin and how they are calculated
Most non spouse beneficiaries must drain inherited 401k and IRA balances within 10 years of the original owner's death. Annual RMDs may be required during the 10 year window if the original owner had already begun RMDs. Spousal beneficiaries have additional options.
Withdrawal questions
Can I withdraw from my Roth IRA before retirement?+
Contributions can be withdrawn at any age, any time, with no tax and no penalty. Earnings are tax free only if you are at least 59.5 and the account has been open at least five years. Withdraw earnings before that and you owe ordinary income tax plus the 10 percent penalty unless an exception applies.
What is the Rule of 55?+
If you separate from your employer in or after the year you turn 55, you can take penalty free 401k withdrawals from that employer's plan. The withdrawals are still taxable as ordinary income. The Rule of 55 applies only to the 401k of the employer you most recently left, not to old plans or IRAs.
When do required minimum distributions start?+
RMDs from a 401k begin at age 73 under SECURE 2.0, rising to 75 in 2033. The Roth IRA has no RMDs during the original owner's lifetime. The Roth 401k previously had RMDs but no longer does, starting in tax year 2024.
Is there a way to take penalty free 401k withdrawals before 59.5?+
Yes, several. Rule of 55 if you separate at 55 or later, substantially equal periodic payments under Section 72(t), disability, qualified reservist distributions, medical expenses above 7.5 percent of AGI, IRS levies, qualified domestic relations orders, and the SECURE 2.0 emergency withdrawal of up to $1,000 per year. Each has specific rules and tax remains due.