My Client - an unemployed bartender took a qualified disaster distribution of $50,000.00. from his job related retirement account over the period of his unemployment.  Most was used for paying expenses however he paid off his credit card accounts in the amount of $10,000. so that he would not have to make his monthly payments.  Most of the $10,000.00 debt was created in prior years. Would all or part of that $10,000 be considered as qualified? Thanks!