Non-Qualified Distribution
1) A distribution from a Roth IRA that occurs before the Roth IRA owner meets certain requirements (see definition for qualified distributions).
2) A distribution from an education savings account that exceeds the amount used for qualified education expenses. Investopedia Says:
Typically, when a distribution is non-qualified, the amount attributable to earnings will be subject to income tax and an early-distribution penalty of 10%. Related Terms:
In-Service Withdrawal
Individual Retirement Account - IRA
IRA Adoption Agreement and Plan Document
IRA Conversion
Ordering Rules
Qualified Distribution
Recharacterization
Reconversion
Required Minimum Distribution
Roth IRA
Spousal IRA
Triggering Event |