I took money out of my 403b to pay education expenses. Do I still have to pay the penalty?

[MargaretL · Accepted solution]

Yes, you do have to pay the penalty, unfortunately.

The exception doesn't apply to such plans as 403(b) or 401(k)  if taken out early to pay for education; they are subject to additional 10% tax penalty on their early distribution.

Below link shows all exceptions allowed:

https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-tax-on-early-distri...