What Is a Qualified Distribution? - KTRE.com | Lufkin and Nacogdoches, Texas

What Is a Qualified Distribution?

 

In order for earnings to be tax free, you must first meet a five-year holding period for your Roth IRA.  This period begins with the tax year for which the first contribution is made.  After that, any earnings you withdraw for a qualified distribution reason are tax-free and IRS penalty free.  Qualified distributions include: 

 

  1. Distributions made on or after the date on which you attain age 591/2.
  2. Distributions made to your beneficiary (or your estate) upon your death.
  3. Distributions attributable to your being disabled, and
  4. Qualified first-time home buyer distributions (up to $10,000).
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