Penalty free withdrawl from IRA for higher education?

Question

I am going back to school part time for an MBA, I would like withdraw some amount from my RollOver IRA penalty free.


Can withdraw the money after I paid the fees and before the end of the tax year? or would I have to withdraw before the fees is paid

Please Help

Thanks

Answer 1

You can withdraw the money from your IRA at any time during the same calendar year in which you pay the institution for the tuition and fees. Don't forget to include the tuition and fees for the Lifetime Learning Credit if you qualify. The fact that the money came from an IRA and was not penalized does not disqualify it for the credit.

Good luck with your MBA. Hopefully, you will soon be in the 35% tax bracket.

Answer 2

DO NOT TAKE OUT OF YOUR IRA, it will come back in the end to bite you in the butt. i recommend you take out some student loan or something else, because that is money that is earning interest and you taking out money makes you almost double loosing on the capital gain you will make. you should take out a loan not from your IRA. you would have to ask your brooker or whoever takes care of your IRA to find out about fees and how they work...good luck on the MBA (thats what i plan to get)