early withdraw from simple ira
have a member who is taking money out of her simple IRA for college she is under age 59. Is this waved for the penalty.
have a member who is taking money out of her simple IRA for college she is under age 59. Is this waved for the penalty.
Permalink Submitted by Alan Spross on Tue, 2008-06-03 20:01
Yes, if the college expenses are qualified higher education expenses per IRS Pub 590, p 54. Also, note that if the 2 year holding period is not met, any penalty that would otherwise apply becomes 25% rather than 10%. Form 5329 will be needed to claim the exception to penalty.