I want to take a qualified distribution from my Roth to pay some debt. It states everywhere that there is No Tax and No penalty. Is this correct? Is this Income?

[dbaker6960]

I just want to be absolutely sure that I Do Not have to claim this as income.

[HelenC12]

Yes. You can take out whatever you put into your Roth, tax-free, because you already paid taxes on that money. 

You'll receive form 1099-R and report it on your income tax return but it won't be taxed.

You can also make tax-free withdrawals on any additional earnings in your Roth IRA unless either of the following are true:

• You're making the withdrawal less than 5 years after establishing the Roth.
• You're making an early withdrawal (before age 59½) without the exception for death, disability, or the $10,000 first-time homebuyer distribution.

In a nutshell, as long as your Roth has been open for at least 5 years, you can withdraw as much as you want (if you're 59½ or older) or anything up to the amount you put in (if you're under 59½) without any taxes or penalties.

Related Information:

• Where do I enter my 1099-R?
• Is my distribution nontaxable if Box 2a on my 1099-R is 0 or blank?
• What do all the codes in Box 7 of the 1099-R mean?

Source: TurboTax FAQ

[dmertz]

A qualified distribution means that you have met the 5-year requirement and that you have reached age 59½ (or meet the IRS definition of disabled or have died).  The tax code defines qualified distributions as nontaxable income.

A nontaxable Roth IRA distribution must be reported on your tax return, will be included in the amount on Form 1040 line 4a, but will not appear elsewhere or affect anything else on your tax return because it is nontaxable.

There is no 5 year requirement to make your original Roth IRA contributions nontaxable when distributed.  Original contributions always come out first, tax and penalty free.