Qualified distribution for education
Greg Mayes is wondering what the limit is for taking money out of an IRA for qualified education expenses?
Greg Mayes is wondering what the limit is for taking money out of an IRA for qualified education expenses?
Permalink Submitted by Alan Spross on Mon, 2009-10-26 22:15
There is no dollar limit, and taxes will still be due. The education exception only waives the early withdrawal penalty for amounts that meet the definition of qualified higher education expenses.
The challenging part is correctly calculating the amount of qualified expenses that are not offset by various forms of financial aid, taking the distribution out of the IRA and paying the expenses within the same year.
Permalink Submitted by Greg Mayes on Mon, 2009-10-26 22:20
thanks Allen for the response
Greg Mayes