| 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 ½ 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. |
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 Distributions that do not meet the above criteria are considered non-qualified and may be subject to income tax and early distribution penalties. |
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 Introductory Tour through Retirement Plans - Here you will find tutorials that are each devoted to one the most common retirement plans, explaining how to establish, fund, and then take distributions from it. Preparing for the RMD Season - Part 2 - Paying taxes is inevitable--that's why you need to learn about the rules for required minimum distribution. Preparing for the RMD Season - Part 1 - Paying taxes is inevitable - that's why you need to learn about the rules for required minimum distributions. Taking Penalty-Free Withdrawals From Your IRA - If you need to take early distributions, learn under which circumstances you won't suffer expensive consequences. |
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