What is a qualified distribution from a Roth IRA?
A qualified distribution requires: Assets be held in a Roth IRA for at least five taxable years (beginning with the first taxable year for which you contributed to a Roth IRA of any kind) and One of the following events: • Reaching age 59 1/2 • Disability • Purchase of a first home • Death of the account holder
A qualified distribution can be taken from a Roth penalty- and tax-free. To qualify the Roth IRA holder satisfies a 5 years waiting period which begins January 1 of the first taxable year in which you made the contribution and one of the following events occurs: attainment of age 59 ½, disability, the purchase of first time home, or death. In addition, contributions can be withdrawn tax-free and penalty-free at any time.
