If I took money from my 401k for catholic school tuition, why do i have to pay a penalty?

[Delpilar1965]

My 401k plan only allows for certain circumstances and school tuition was one of the options. So why do I have to pay a penalty on the withdrawl

[DoninGA]

Distributions for an education expense are not an exception to the 10% early withdrawal penalty from a 401(k).

Go to this IRS Tax Topic for Additional Tax on Early Distributions From Retirement Plans Other Than IRAs - https://www.irs.gov/taxtopics/tc558

[Hal_Al]

Using a distribution from your IRA  for education qualifies for the penalty exception.  But a distribution from your 401k does not.

[SweetieJean]

And distributions permitted under the retirement plan itself do not necessarily receive the same treatment for tax purposes.