For example, interest-only loans are a popular type of mortgage that are not covered by the QM rule. Many lenders will still originate these loans because there is a demand for such a product. These will probably be the most common loan type under the non-QM umbrella, with high-net-worth borrowers the likely target.
Alimony income. For purposes of making an IRA contribution, taxable alimony income counts as qualifying income. This is a special rule that permits you to build retirement savings in an IRA even if you rely on alimony income for your support. The rule applies only to taxable alimony income, though.
Distributions taxed as ordinary income. If your distributions are taxable, youâre required to treat them as ordinary income. You canât treat them as capital gain, even if the IRA received the earnings as capital gain. Example: You contributed $2,000 to a Roth IRA and invested it in stock.hen taxes and penalties apply. If you receive a non-qualified distribution of earnings from an IRA and donât meet any of the tests described above, you must pay two taxes: the regular income tax plus an additional 10% early withdrawal penalty tax. Example: You contributed $2,000 to a Roth IRA.