Qualified distribution

A qualified distribution is made from a Roth IRA and is tax and penalty free. The following two requirements must be met in order to be a qualified distribution:

The distribution must occur at least five years after the owner established and funded his/her first Roth IRA; and, At least one of the following: (1) The Roth IRA holder must be at least age 59.5 when the distribution occurs. (2) Distributed assets limited to $10,000 are used towards the purchase or rebuilding of a first home for the Roth IRA holder or a qualified family member. (3) The distribution occurs after the Roth IRA holder becomes disabled. (4) The assets are distributed to the beneficiary of the Roth IRA holder after his/her death—Read more at Investopedia. Kagan, Julia. “Qualified Distribution.” 21 May 2018