do people pay taxes on distribution out of IRA for education
if I do a distribution out of my IRA for higher education do I pay taxes on that? I know I do not pay penalty but how about taxes?
if I do a distribution out of my IRA for higher education do I pay taxes on that? I know I do not pay penalty but how about taxes?
Permalink Submitted by Alan Spross on Thu, 2010-10-28 16:14
You will still owe ordinary income tax if the distribution would otherwise be taxable. Of course, if you have a Roth IRA, chances are that your distribution might come from regular contributions and therefore be tax free. For a TIRA, the distribution is fully taxable unless you have basis per Form 8606.