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:

• The Roth IRA holder must be at least age 59.5 when the distribution occurs.
• 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.
• The distribution occurs after the Roth IRA holder becomes disabled.
• The assets are distributed to the beneficiary of the Roth IRA holder after his/her death.

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