In specific situations, account holders can withdraw funds from a Roth IRA for emergency expenses. Learn about limits and repayment rules below.

SECURE 2.0 Act Sec 115 adds new IRC Sec 72(t)(2)(I))) that provides an exception to the 10% early distribution tax for certain distributions used for emergency expenses, which are unforeseeable or immediate financial needs relating to personal or family emergency expenses.

Only one distribution is permissible per year of up to $1,000, and a taxpayer has the option to repay the distribution within 3 years.

No further emergency distributions are permissible during the 3-year repayment period unless repayment occurs.