These come out first and are always tax- and penalty-free.
The IRS has a specific "ordering rule" for how money comes out of your Roth IRA:
Yes, you can use your Roth IRA to buy a house, but it works differently depending on whether you are withdrawing your or your investment earnings . Key Rules for Homebuyers can i use roth ira to buy a house
These come out next and may have a separate 5-year waiting period.
You can withdraw your original contributions at any time, for any reason, without taxes or penalties. These come out first and are always tax- and penalty-free
To avoid paying income tax on withdrawn earnings, your Roth IRA must have been open for at least five years .
These come out last. If you are a first-time homebuyer, you can take up to $10,000 of earnings penalty-free over your lifetime. Pros and Cons Roth IRA First-Home Rule: $10 000 Penalty-Free - Finhabits You can withdraw your original contributions at any
To use investment earnings (up to $10,000) penalty-free, you must be a first-time homebuyer. The IRS defines this as anyone who has not owned a primary residence in the last two years .