Qualified Birth or Adoption Distribution Defined

Q: What is a qualified birth or adoption distribution? 

A: It is a distribution:

• Up to $5,000 from an applicable eligible retirement plan (separate limit for each parent).
• Made during the one-year period beginning on the date on which the child of the individual is born or the legal adoption by the individual of an eligible adoptee is finalized.

The distribution must include the name, age, and Taxpayer Identification Number (TIN) on the tax return for the year the distribution is made.