What is a qualified distribution from a designated Roth account?
• made on or after the date the employee attains age 59½ , • made after the employee’s death, or • attributable to the employee’s being disabled. If a distribution is made to an alternate payee or beneficiary, then the employee’s age, death or disability is used to determine whether the distribution is qualified. The only exception is when the alternate payee or surviving spouse rolls over the distribution to his or her own employer’s designated Roth account, in which case their own age, death or disability is used to determine whether the distribution is qualified. A qualified distribution from a designated Roth account is not included in the employee’s gross income.
• made on or after the date you attain age 59½ , • made after your death, or • attributable to your being disabled. If a distribution is made to your alternate payee or beneficiary, then your age, death or disability is used to determine whether the distribution is qualified. The only exception is when the alternate payee or surviving spouse rolls over the distribution to his or her own employer’s designated Roth account, in which case their own age, death or disability is used to determine whether the distribution is qualified. A qualified distribution from a designated Roth account is not included in your gross income.
Related Questions
- What happens if an employee takes a distribution from his or her designated Roth account before the end of the 5-taxable-year period?
- Since a qualified distribution from a designated Roth account is not subject to taxation, must the distribution be reported?
- What is a qualified distribution from a designated Roth account?
