The Roth IRA has many benefits compared to the traditional IRA. Distributions from traditional IRAs, for example, are generally treated as ordinary income and may be subject to income tax. Distributions from traditional IRAs may also be subject to an early distribution penalty if the withdrawal occurs while the IRA owner is under the age of 59½. A Roth IRA, on the other hand, allows qualified distributions to be free from tax and penalties.1 The question is, which distributions are considered qualified?
