Loans as Qualified Education Expenses
Do student loan payments count as qualified higher education expenses for purposes of avoiding the 10% withdrawal penalty from an IRA?
Do student loan payments count as qualified higher education expenses for purposes of avoiding the 10% withdrawal penalty from an IRA?
Permalink Submitted by Alan - IRA critic on Sat, 2014-08-02 00:30
No, QHEE must be paid directly in the same year as the IRA distribution, not by loan proceeds. But remember that student loan interest is already an above the line deduction so there IS a tax benefit for the loans.
Permalink Submitted by Alanna Crawford on Fri, 2014-08-08 13:52
Perfect, thank you!