Section - IRA Distributions - Distributions from Roth IRAs
3 important questions on Section - IRA Distributions - Distributions from Roth IRAs
Are distributions of principal from a Roth IRA taxable?
Distributions of principal (contributions) from a Roth IRA aren't taxable because taxpayers aren't allowed to deduct contributions to a Roth IRA.
In what order are distributions from Roth IRAs considered?
Distributions from Roth IRAs are considered to first come from principal, then earnings.
What is a qualified distribution from a Roth IRA?
A qualified distribution is a distribution from a Roth IRA that:
- Is made at least five years after the first day of the year in which the taxpayer made his or her first contribution to the Roth IRA, and
- Meets one of the following requirements:
- taxpayer is age 59½ or older
- taxpayer is disabled;
- taxpayer is a first-time homebuyer (has not owned a home for two years) and uses the distribution to purchase a home (maximum $10,000); or
- distribution is made to a beneficiary after the taxpayer's death.
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