What is a ‘Qualified Distribution’
Distributions made from a Roth IRA that are tax and penalty free. In order to be a qualified distribution, the following two requirements must be met:
1) It must occur at least five years after the Roth IRA owner established and funded his/her first Roth IRA
2) At least one of the following requirements must be met:
a) The Roth IRA holder must be at least age 59.5 when the distribution occurs.
b) 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.
c) The distribution occurs after the Roth IRA holder becomes disabled.
d) The assets are distributed to the beneficiary of the Roth IRA holder after his/her death.
Explaining ‘Qualified Distribution’
Distributions that do not meet the above criteria are considered non-qualified and may be subject to income tax and early distribution penalties.
Further Reading
- An empirical comparison of published replication research in accounting, economics, finance, management, and marketing – www.sciencedirect.com [PDF]
- Reactions of the Spanish capital market to qualified audit reports – www.tandfonline.com [PDF]
- Qualified Audit Opinion Analysis [J] – en.cnki.com.cn [PDF]
- Testing for nonlinear unit roots in the presence of a structural break with an application to the qualified PPP during the 1997 Asian financial crisis – onlinelibrary.wiley.com [PDF]
- A stochastic dominance analysis of the issuance of qualified opinions – search.proquest.com [PDF]
- Qualified audit reports and costly contracting – link.springer.com [PDF]
- The economics of small business finance: The roles of private equity and debt markets in the financial growth cycle – www.sciencedirect.com [PDF]
- Using experimental economics to measure social capital and predict financial decisions – www.aeaweb.org [PDF]
