IRA exception for education expenses

When taking money out of an IRA under age 59 1/2 for qualifying education expense does the check from the IRA have to be paid to the college or can the client deposit into their checking account and write a check.



The check can be deposited into checking and then paid by any method (no tracing rules). However, be sure to review Pub 590 B for details on the higher education expenses eligible, coordination with other benefits, and the timing of the distribution and the payment to the provider.

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