Which distribution from a Roth IRA is tax-free?

Distributions from a Roth IRA can be tax-free, but this is contingent upon meeting specific criteria known as "qualified distributions." A qualified distribution from a Roth IRA is one that occurs at least five years after the first contribution to the Roth IRA and is made after the account holder reaches age 59½, becomes disabled, or uses the funds for a first-time home purchase (up to a $10,000 limit).

The focus of this question is on understanding the conditions under which distributions from a Roth IRA are tax-free. It is not sufficient for distributions to simply occur; they must also meet these specific requirements to be considered qualified and therefore tax-free. This ensures the benefits of a Roth IRA, which is designed to encourage long-term saving and investment.

Fundamentally, while we can appreciate that distributions by beneficiaries or distributions made during the account holder's life might have varying tax implications, only those that satisfy the criteria for qualified distributions can confidently be termed tax-free.