Non-Qualified Distributions. If you receive a distribution from your ▇▇▇▇ ▇▇▇ that does not constitute a qualified distribution, a portion of it may be taxable and may be subject to the 10% premature distribution penalty tax (if you do not qualify for an exception). You must apply the special “ordering” rules discussed above to determine whether part of your non-qualified distribution represents a taxable amount. Distributions Prior to Age 59½ Exempt from 10% Penalty Tax. The 10% penalty tax on premature distributions does not apply to distributions made to you before you attain age 59½ for any of the following reasons:
Appears in 2 contracts
Sources: Roth Individual Retirement Account Custodial Agreement, Roth Individual Retirement Account Custodial Agreement