Distributions from beneficiary IRA used for Grad School Tuition
Early 20s client has a beneficiary IRA. She plans to us portion of the beneficiary IRA to pay for grad school tuition. How will this distribution be treated? Taxable income only? Any other considerations?
Permalink Submitted by Alan - IRA critic on Fri, 2023-01-20 18:18
Since it’s an inherited IRA there is never a 10% penalty regardless of how the funds are used. But distributions will be taxable.