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How do I take out my money?

To take money out of your OregonSaves account you need to request a distribution.

OregonSaves accounts are designed specifically to help you save for retirement, but we understand that you may need the money sooner; or, your retirement may be coming up soon. Always keep in mind that it’s your money and it’s up to you what you will do with it. OregonSaves accounts are Roth IRAs. Distributions from your OregonSaves Roth IRA account will be subject to taxation in accordance with applicable federal tax rules.

Roth IRAs must meet two requirements for you to take a tax-and penalty-free “qualified” distribution:


A five-year holding period must have passed before the distribution. As a Roth IRA owner you have one five-year holding period for all Roth IRAs you own. Your five-year holding period begins on January 1 of the year in which you make your first contribution or conversion contribution to any Roth IRA you own (including your OregonSaves account). The five-year holding period ends December 31 of the fifth consecutive tax year thereafter.


The distribution is made on account of one of these four “qualified” reasons:

  • You have reached age 59½
  • You have a qualifying disability
  • Your beneficiaries are taking a distribution following your death
  • You take the funds to pay first-time homebuyer expenses (up to $10,000)

Nonqualified distributions

A Roth IRA distribution that does not meet both of the qualified distribution requirements is a “nonqualified” distribution and whether it is subject to tax and penalty depends on what types of money are being distributed. Any amounts you have contributed (with the exception of certain “conversion” contributions) that are being returned to you will be distributed tax and penalty free but the earnings on your account that are distributed may be subject to tax and penalty. Earnings are only distributed after all the contributions you made have already been removed so you can avoid exposing yourself to taxes and penalties by only removing amounts you have contributed.

There is a set order in which contributions and earnings are considered to be distributed from your Roth IRA. In applying the ordering rules, you must:

  1. Aggregate all Roth IRAs you own,
  2. Aggregate all distributions made during the year,
  3. Disregard excess Roth IRA contributions and related earnings, and
  4. Disregard rollover contributions from other Roth IRAs.

The tax rules governing Roth IRAs are complex. We encourage you to consult with a qualified tax advisor to discuss your particular circumstances.

Why is saving now so important?

For many of us, Social Security payments won’t be enough when it comes time to retire. Saving even a little now can potentially make a difference later.1

66% of money comes from sources other than social security, 33% of money comes from social security

Moving your money

If you take money out of your OregonSaves Roth IRA and it is a nonqualified distribution you will always have to include earnings in your gross income for the year of the distribution at your ordinary tax rate.

If you take money out of your OregonSaves Roth IRA before you turn age 59 ½ and it is a nonqualified distribution, there is a 10% penalty tax charged by the IRS on the earnings portion of your distribution.

There are a few reasons why you wouldn’t be charged the penalty tax, and those are called “early distribution penalty exceptions.” They include disability, some medical expenses, buying your first home, college expenses, and more.

Please keep in mind that nonqualified distributions will have an impact on your retirement – the more money you take out, the less you may have when you retire. If you have questions about withdrawing money from your OregonSaves Roth IRA or the taxation of such a distribution you should talk to a qualified tax advisor.

  1. Social Security Administration, Fast Facts & Figures about Social Security,, 2017.