Earnings that you withdraw from a Roth IRA that are qualified distributions are not subject to federal income tax or penalties. These earnings are qualified distributions if the earnings are withdrawn after five years and you either:

. Reach age 59½.
. You die or are disabled.
. You use the funds to pay qualified first-time homebuyer expenses.

Earnings withdrawn from a Roth IRA that are not qualified distributions are subject to a 10 percent federal tax penalty.