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.
Investopedia Commentary
Distributions that do not meet the above criteria are considered non-qualified and may be subject to income tax and early distribution penalties.
Related Links
Introductory Tour through Retirement Plans
Preparing for the RMD Season - Part 2
Preparing for the RMD Season - Part 1
Taking Penalty-Free Withdrawals From Your IRA
See also: In-Service Withdrawal, IRA, IRA Adoption Agreement and Plan Document, IRA Conversion, Non-Qualified Distribution, Ordering Rules, Recharacterization, Reconversion, Required Minimum Distribution, Roth IRA, Spousal IRA, Triggering Event