<prompt> Human: I recently pulled my contributions 17k out of my Roth IRA for a down payment on a pending home purchase. The main issue is I did not realize that the account needed to be 5 years old to not incur any penalties account made in 2015.Now my pressing question in regards to the penalty is:1.Since the distribution is being used for a home purchase and down payment, does the amount that gets penalized get reduced from 17k to 7k 10k allowed for home buying rule?2.Is there any supporting paperwork that I need to have ready if the penalty gets reduced in the situation listed above?Assistant: That rule only applies to pulling out gains, not contributions. Since you stated you pulled out 17k in contributions, then it wouldnt affect you and there would be no penalty.Human: Thats a bit confusing then. I looked over my recent Fidelity statement that indicated the distribution and its noted as Early Distribution No Exceptions Applied. I am assuming that I will be anticipating the penalty solely on the fact that the account is 5 years old.  <response>: Fidelity is not responsible for tracking your cost basis. It just reports to the IRS so that you are also incentivized to file the proper forms with the IRS. Report on Form 8606 part 3. Do not use line 20. 5 year rule does not apply here either. You can withdraw Roth IRA contributions any time without paying taxes or penalties. The 5-year rule only applies to pretax-to-Roth conversions e.g. traditional IRA to Roth IRA, traditional 401k to Roth IRA, etc.. 