Who can receive a qualified distribution from a Roth IRA?

A qualified distribution from a Roth IRA is typically tax-free and penalty-free, provided certain conditions are met, such as the account being held for at least five years and the account holder being at least 59½ years old at the time of withdrawal.

Beneficiaries or the estate of the account holder can indeed receive distributions from a Roth IRA without incurring penalties, as they are seen as designated beneficiaries. Upon the death of the account holder, the assets of the Roth IRA can pass to named beneficiaries, allowing them to make withdrawals that qualify for tax-free treatment as long as the distribution meets the requirements set forth by the IRS.

The other options suggest limitations on who can receive these distributions, which do not align with the structure of Roth IRAs. Only restricting distributions to the original account holder or their spouse does not account for the rights beneficiaries have upon the account holder's death. Additionally, allowing anyone the account holder chooses to receive distributions without consideration of beneficiary rules would not accurately reflect the regulatory framework governing IRAs.