B—Roth IRA Distribution Flowchart

The rules regarding distributions from Roth IRAs are quite different from those governing traditional IRAs.

Distributions may be taken from a Roth IRA at any time. However, as in the case of a traditional IRA, distributions prior to age 59½, to the extent they exceed the account holder`s basis in the account, are subject to income tax and penalty tax. Unlike qualified retirement plans and traditional IRAs, there is no requirement that distributions begin at age 70½, or at any age during the lifetime of the Roth IRA owner [IRC §408A(c)(5)]. Thus, there will never be a penalty for insufficient minimum distributions.

Roth IRA Distribution FlowchartDownload