Traditional IRA withdrawal for college tuition
Funds withdrawn from a Traditional IRA are used to pay for College Tuition.
Owner is under 591/2.
Student is 26 year old daughter and still living at home.
Can not be claimed as a dependent or qualifying child.
Can 10% penalty be waived?
Permalink Submitted by Alan - IRA critic on Tue, 2014-01-21 21:06
Yes, there is no age limit for the child.
Permalink Submitted by Larry Szczepanski on Wed, 2014-01-22 19:36
Thanks Alan!Anywhere I can verify that?Perhaps the IRS website?
Permalink Submitted by Alan - IRA critic on Wed, 2014-01-22 21:08
This is copied from Sec 72t with respect to the higher education exception:72(t)(7) QUALIFIED HIGHER EDUCATION EXPENSES. –For purposes of paragraph (2)(E) — 72(t)(7)(A) IN GENERAL. –The term “qualified higher education expenses” means qualified higher education expenses (as defined in section 529(e)(3)) for education furnished to — 72(t)(7)(A)(i) the taxpayer, 72(t)(7)(A)(ii) the taxpayer’s spouse, or 72(t)(7)(A)(iii) any child (as defined in section 15(f)(1)) or grandchild of the taxpayer or the taxpayer’s spouse, at an eligible educational institution (as defined in section 529(e)(5)).