Non-Qualified Distribution
2020-08-03
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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.
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%.