Defining Qualified Distribution. Distributions from a Roth IRA that are not qualified may be subject to income tax and an additional 10% early-distribution penalty. A qualified distribution meets both of the following two categories of requirements: 1.f John takes a distribution of $25,000, the first $10,000 comes from his regular Roth IRA contributions and is therefore tax and penalty free. The additional $15,000, however, comes from his taxable conversion assets.