Distributions from a Roth IRA that are subject to taxation are treated first as from earnings and last as from contributions.

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Distributions from a Roth IRA are tax-free as long as they are qualified distributions and therefore not subject to taxation. If a distribution is not qualified, it is subject to taxation and penalties. However, in this case, the distribution is treated as a proportional distribution from both earnings and contributions, not first from earnings and last from contributions.

Distributions from a Roth IRA That Are Subject to Taxation