Qualified Distribution

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Qualified Distribution

A tax-exempt payment made to an annuitant from a Roth IRA. In order to be qualified, a distribution must occur at least five years after the Roth IRA was established and the annuitant must be at least 59.5 years old (unless there are extenuating circumstances such as a disability). A distribution is qualified because the contributions to the IRA are not deducted from the annuitant's taxable income.
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If total Tax Year 2009 qualifying distributions were larger than the total of averaged qualifying distributions made between 2004 and 2008 plus 1 percent of Tax Year 2009 net investment income, a foundation was eligible for the reduced tax rate for Tax Year 2009.
4942 to make "qualifying distributions" at least equal to a minimum distributable amount each tax year.
Chris may not make any qualifying distributions from his Roth IRAs until after 2008, the fifth taxable year following the first Roth IRA contribution.
The status of the economy and the stock market affect assets and giving levels, which in turn affect the charitable administrative expense portion of qualifying distributions. Independent foundations are particularly sensitive to economic trends because their mandated charitable distribution levels (payout) are based on their net assets.
(6) The distributions are assumed to be qualifying distributions so that all returns are received tax free.
The House bill also includes a provision that would reduce the excise tax on private foundation investment earnings and eliminate administrative expenses from qualifying distributions for all private foundations.
You also can claim a Hope or Lifetime Learning Credit, and exclude qualifying distributions from an Education IRA in the same year, as long as the distribution isn't used for the same expenses as the credits.
Qualifying distributions from Section 529 plans will be federal income tax-free beginning next year as well.
Members of a consolidated group generally elect the 100 percent dividends-received deduction under section 243(a)(3) of the Code for qualifying distributions. Thus, both dividend and non-dividend distributions received from affiliated corporations are nontaxable.
* "Private Foundations: Achieving Maximum Use of Excess Qualifying Distributions," The Tax Adviser, April 02, page 225
A controversial provision of the Act prohibits non-operating private foundations from counting payments to a Type III SO as a qualifying distribution. They also cannot count payments to other types of SOs which are controlled by disqualified persons of the foundation as qualifying distributions.