The New York City Employee IRA

Roth NYCE IRA Withdrawals

You can withdraw your Roth NYCE IRA assets at any time. However, if the distribution is a not a Qualified Distribution you will be subject to income taxes on all the earnings along with a 10% early withdrawal penalty.


You can leave amounts in your Roth NYCE IRA as long as you live. Upon your death, the assets in your Roth NYCE IRA will be paid to your designated beneficiaries.


You are not required to take distributions from your Roth IRA at any age. The minimum distribution rules that apply to the 457 Plan, 401(k) Plan or Traditional IRAs do not apply to Roth IRAs while the owner is alive. However, after your death the designated beneficiaries of your Roth NYCE IRA account will be subject to certain minimum distribution rules that apply to Traditional IRAs.


You cannot use your Roth NYCE IRA to satisfy minimum distribution requirements for your 457 Plan, 401(k) or Traditional NYCE IRA. 

How to withdraw money from your Roth NYCE IRA

To take a full distribution, partial distribution, or periodic payments from your account, you must submit a Roth NYCE IRA Withdrawal Form.


Periodic payments are distributions made over regular intervals. Periodic payments can be made monthly, quarterly, semi-annually, or annually.


Distributions that are a result of death, disability or divorce, please contact NYCE IRA at (212) 306-7760, or 1-888-IRA-NYCE, if outside NYC, for instructions.


Unlike a traditional IRA, you cannot deduct contributions to a Roth IRA. But, if you satisfy the requirements, a Qualified Distribution is tax free.


A Qualified Distribution from your Roth NYCE IRA is not subject to income tax or an early withdrawal penalty.


A Qualified Distribution is any payment or distribution from your Roth IRA that meets the following requirements:

  • It is made after the 5-year period beginning with the first taxable year for which a contribution was made, AND 
  • The payment or distribution is: 

    1. Made on or after the date you reach age 59½,
    2. Made because you are disabled, or
    3. Made to a beneficiary or to your estate after your death.

If you receive a distribution from your Roth IRA that is not a Qualified Distribution, the earnings part of it may be taxable. There is a set order in which contributions (including conversion contributions) and earnings are considered to be distributed from your Roth IRA.

  • Regular contributions
  • Conversion contributions 
  • Earnings on contributions 

For more information on figuring the non-taxable and taxable amounts, see IRS Publication 590 or a licensed tax professional.