Are There Any Important Exceptions to the Qualified Distribution Definition Distributions Within 5 Years, For Example?
A very important exception to the qualified distribution definition is for distributions within 5 years of the initial contribution. (B) Distributions within nonexclusion period. A payment or distribution from a Roth IRA shall not be treated as a qualified distribution under subparagraph (A) if such payment or distribution is made within the 5-taxable year period beginning with the 1st taxable year for which the individual made a contribution to a Roth IRA (or such individual’s spouse made a contribution to a Roth IRA) established for such individual.
Related Questions
- Can I use the qualified charitable distribution to create a trust or gift annuity or another life income agreement from which I would benefit?
- Can a qualified charitable distribution satisfy any required minimum distributions (RMDs) I must take?
- How are distributions from a qualified retirement plan taxed to a participant?
