Figure 2-1. Is the Distribution from Your Roth IRA. Taxable? 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 in which you first set up and contributed to a Roth IRA. ?
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IF Yes Continue To Decision (2)
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IF No Continue To Process (b)
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Decision (2). Were you at least 59 1/2 years old at the time of the distribution?
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IF No Continue To Decision (3)
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IF Yes Continue To Process (a)
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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?
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IF No Continue To Decision (4)
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IF Yes Continue To Process (a)
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Decision (4). Is the distribution due to your being disabled?
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IF No Continue To Decision (5)
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IF Yes Continue To Process (a)
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Decision (5). Was the distribution made to your beneficiary or your estate after your death?
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IF Yes Continue To Process (a)
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IF No Continue To Process (b)
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Process (a). The distribution from the Roth IRA. is a qualified distribution. It is not subject to tax or penalty.
Process (b). The distribution from the Roth IRA. is not a qualified distribution. It may be subject to tax and it may be subject to penalty.
End. This is the ending of the flowchart.
