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 IRA2) At least one of the following requirements must be met: a) The Roth IRA holder must be at least age 59.5 when the distribution occurs. b) 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. c) The distribution occurs after the Roth IRA holder becomes disabled. d) The assets are distributed to the beneficiary of the Roth IRA holder after his/her death. Distributions that do not meet the above criteria are considered non-qualified and may be subject to income tax and early distribution penalties.