What are all the penalty-free exceptions for early Roth IRA withdrawals in 2025?

You can always withdraw your Roth IRA contributions (the money you put in) at any time, at any age, with no tax and no penalty. The 10% early withdrawal penalty only applies to the earnings portion of your Roth IRA if withdrawn before age 59 1/2 and the account hasn't been open for at least 5 years.

The ordering rules matter: When you take money out of a Roth IRA, the IRS treats withdrawals in this order: (1) your contributions first, (2) conversions and rollovers second (FIFO), (3) earnings last. So you only touch the penalty-eligible earnings after you've exhausted your contributions and conversions.

Full list of exceptions to the 10% early withdrawal penalty on earnings (2025):

• First-time home purchase: Up to $10,000 lifetime (and starting in 2025, this limit is indexed for inflation). Must be used within 120 days for a home purchase.
• Qualified higher education expenses: Tuition, fees, books, supplies, and room and board for you, your spouse, children, or grandchildren at an eligible institution.
• Unreimbursed medical expenses: The portion of medical expenses that exceeds 7.5% of your AGI.
• Health insurance premiums while unemployed: If you received unemployment compensation for 12+ consecutive weeks and use the withdrawal for health insurance premiums.
• Disability: You must be totally and permanently disabled as defined by the IRS.
• Substantially Equal Periodic Payments (SEPP/72(t)): You take a series of substantially equal payments based on your life expectancy. Once started, you must continue for 5 years or until age 59 1/2 (whichever is later).
• IRS levy: If the IRS levies your IRA to collect a tax debt.
• Qualified reservist distribution: If you're a military reservist called to active duty for 180+ days.
• Birth or adoption: Up to $5,000 per parent within one year of a birth or finalized adoption (added by the SECURE Act).
• Domestic abuse victim: Up to $10,000 (indexed for inflation) if you're a victim of domestic abuse, available for one year after the abuse. Added by SECURE 2.0.
• Terminal illness: If you're terminally ill (certified by a physician as having a condition that is reasonably expected to result in death within 84 months). Added by SECURE 2.0.
• Emergency personal expenses: Up to $1,000 per year for emergency expenses, with the option to repay within 3 years. Added by SECURE 2.0.
• Federally declared disaster: Up to $22,000 for qualified disaster recovery expenses if you live in a federally declared disaster area. Enhanced by the OBBBA.

What about student loans?

There is no specific penalty exception for student loan repayment. However, you can withdraw your contributions (not earnings) penalty-free to pay student loans, since contributions come out first and are always tax-and-penalty-free. Just don't dip into earnings for this purpose unless you qualify under one of the exceptions above.

Tax treatment reminder:

Even when the 10% penalty is waived, you may still owe income tax on withdrawn earnings if the distribution isn't "qualified" (account open 5+ years and you're 59 1/2+, disabled, or a beneficiary). Report early distributions on Form 5329, and use the exception code that applies to your situation.