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Finance Dictionary and Glossary of Investment Terms
Qualified Distribution
Definition 1.
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 IRA2) 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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