how do I pay a penalty for early Roth IRA withdrawal

jwyrick001 Member Newcomer
edited January 15 in Retirement Income

I withdrew $1,300 from my Roth IRA before the 5 year time limit. I know I owe a penalty to the IRS; what is the IRS tax form I use and where can I obtain a copy.



  • AlexO
    AlexO FreeTaxUSA Agent

    Hello, jwyrick001!

    That is a great question!

    The penalty for an early withdrawal is figured via Form 5329. Our software will prepare this form automatically for you if needed.

    Please keep in mind, that you can withdraw your basis from your Roth IRA at any time tax-free. Thus, if you have made at least $1,300 in Roth IRA contributions previously and have not withdrawn these contributions already, the $1,300 you withdrew will be nontaxable and not subject to any penalty.

    The 5-year rule you mentioned is regarding withdrawing earnings on the contributions.