A Roth IRA is set-up differently than a traditional IRA or 401k. You have different rules for taking money out of your Roth IRA.

He is the order of how you take out money from your Roth IRA, from first to last:

• Regular contributions (The money you put into the account)
  
• Taxable portion of first conversion (This may not apply to you)
  
• Nontaxable portion of first conversion (This may not apply to you)
  
• Each subsequent conversion, in order, with the taxable portion coming out first for each conversion (This may not apply to you)
  
• Earnings (any increase in value while inside your Roth IRA)

So basically, if you didn't do a conversion, you can withdraw your cost basis from your Roth IRA, tax-free, until you have used up all those funds. So if you contributed $10,000 to your Roth IRA and it is currently $20,000, then you can take out $10,000 before any taxes and penalties would be due.  Make sure to keep up with your cost basis so you don't withdraw too much.

So what happens if you take out the earnings before retirement?

* If you make a withdrawal from your Roth IRA before the first day of the fifth year after the year you first opened your Roth IRA, then it is taxable as ordinary income; you would also owe 10% early withdrawal penalty if you're under age 59½ unless an exception applies.

So what are the exceptions?

* If you become disabled (make sure to review the criteria for this exception)

* If you make what the IRS calls "substantially equal periodic payments" over your life expectancy

* Medical insurance, but only after you have been on unemployment for 12 weeks.

* First-time home purchase (up to $10,000)

* Qualified expenses of higher education for yourself or eligible family members

* Back taxes from IRS

These are the basics of Roth IRA withdrawals. Please take the time to research a little deeper before withdrawing from you Roth IRA, according to your circumstances.