The short answer is unless you need the money immediately, you shouldn't withdraw from your Roth IRA until you enter retirement. You can actually withdraw from your Roth IRA at any time (as long as the account has been open at least 5 years) without incurring the 10% early distribution penalty. That said, if you withdraw from your Roth before 59 1/2, you may face a penalty; however, because Roth distributions are considered to come first from initial contributions and then from earnings, you can usually avoid the penalty.

Roth IRAs are funded with after-tax funds and as a result, withdrawals from a Roth IRA are tax free in retirement (defined by the IRS as the age of 59 1/2). Further, contrary to Traditional and SEP IRAs which are subject to required minimum distributions (RMD) once you turn 70 1/2, there is no such requirement for Roth IRAs so you can let your money sit and grow within the account indefinitely.

Ultimately, when you withdraw from your Roth IRA depends entirely on when you need the income. It is important to keep in mind that if you withdraw from your Roth IRA before retirement, even though you won't be penalized, you may risk not having sufficient funds to pay for your living costs once you enter retirement. We highly encourage you to chat with an advisor if you are thinking of withdrawing from your Roth IRA.