2007-08-25 20:44:56 · 5 answers · asked by maddhornet 1 in Business & Finance ➔ Taxes ➔ United States
Withdrawals before the age of 59½ is "Early withdrawal." However, in some case there is no penalty on early withdrawals.
If distributions are not more than your qualified higher education expenses, then there is no early withdrawal penalty.
These are expenses related to enrollment or attendance at an eligible postsecondary school. It includes tuition and fees, books, supplies and equipment.
2007-08-26 03:04:00 · answer #1 · answered by MukatA 6 · 0⤊ 0⤋
You cannot withdraw money for higher education from a traditional IRA without paying taxes. If your withdrawal is less than your qualified education expenses for the year, then the 10% early withdrawal penalty is waived. However, you still will pay income tax on the amount withdrawn.
2007-08-26 03:37:32 · answer #2 · answered by ninasgramma 7 · 0⤊ 0⤋
Assuming that it was a deductible Traditional IRA, yes, you still have to pay taxes on the withdrawl. Normally, if you are under 59 1/2, there is also a 10% penalty. This penalty is waved if the money is used for college.
2007-08-26 03:14:35 · answer #3 · answered by Wayne Z 7 · 1⤊ 0⤋
If it's a Roth IRA, I believe so. Also, with a Roth, you can withdraw the original money you put in after five years without penalty.
2007-08-25 20:52:21 · answer #4 · answered by Katherine W 7 · 0⤊ 0⤋
Does Northern Ireland allow it.??
2007-08-25 20:51:19 · answer #5 · answered by Anonymous · 0⤊ 1⤋