Figure 2-1. Is the Distribution from Your Roth IRA a Qualified Distribution?

Figure 2-1. Is the Distribution from Your Roth IRA a Qualified Distribution?

Summary: This flowchart is used to determine if distributions from a Roth IRA. are taxable.

Start Here

This is the starting of the flowchart.

Decision (1)

Has it been at least 5 years from the beginning of the year for which you first opened and contributed to a Roth IRA. ?

IF Yes Continue To Decision (2)
IF No Continue To Process (b)

Decision (2)

Were you at least 59 1/2 years old at the time of the distribution?

IF No Continue To Decision (3)
IF Yes Continue To Process (a)

Decision (3)

Is the distribution being used to buy or rebuild a first home as Explained in First Home under when Can I Withdraw or Use Assets in chapter 1?

IF No Continue To Decision (4)
IF Yes Continue To Process (a)

Decision (4)

Is the distribution due to your being disabled (defined under Early Distributions in chapter 1)?

IF No Continue To Decision (5)
IF Yes Continue To Process (a)

Decision (5)

Was the distribution made to the owner's beneficiary or estate?

IF Yes Continue To Process (a)
IF No Continue To Process (b)

Process (a)

The distribution from the Roth IRA. is a qualified distribution. It isn't subject to tax or penalty.

Continue To End

Process (b)

The distribution from the Roth IRA. isn't a qualified distribution. The portion of the distribution allocable to earnings may be subject to tax and it may be subject to the 10% additional tax.

Continue To End

End

This is the ending of the flowchart.