For a non-qualiﬁed distribution from a Roth IRA, the distribution is deemed to come from direct contributions ﬁrst.

Question

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This is true. When a non-qualified distribution is made from a Roth IRA, the distribution is deemed to come from direct contributions first. This means that any earnings or investment gains in the account are not subject to taxes or penalties until after the direct contributions have been distributed.

For a Non-Qualiﬁed Distribution from a Roth IRA, the Distribution