can you use 403b money towards education?

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can you use 403b money towards education?

that is, can you withdraw $ early for this purpose?

2007-09-10 10:59:04 · 2 answers · asked by Anonymous in Business & Finance ➔ Personal Finance

2 answers

no... you will pay the 10% penalty plus taxes...

If you are separated from service from your 403b provider, you can consider rolling over your 403b into an rollover IRA and then doing the distribution.

that should help you avoid the 10% withdrawal penalty.

make sure to check with a tax advisor.

good luck!

Ken Clark
Certified Financia Planner

2007-09-10 19:37:53 · answer #1 · answered by Anonymous · 0⤊ 0⤋

No.

If you take the money out, you will be subject to taxes and a 10% penalty.

There is an education exception to the 10% penalty but it only applies to IRAs; not 403b's or 401k's.

2007-09-10 14:32:32 · answer #2 · answered by Wayne Z 7 · 0⤊ 0⤋