Took money from a 401K to pay sons college tuition fall 2017. I paid tax on it. Do I have to pay penalty if I am 58 yr old all money was paid to the college?
Took money from a 401K to pay sons college tuition fall 2017. I paid tax on it. Do I have to pay penalty if I am 58 yr old all money was paid to the college?
Yes. You will be required to pay the 10% penalty since you were not aged 59 1/2 when you withdrew the funds and paying college funds is not listed as a qualifying exception for a 401-K plan.
Please view the IRS link below to see a list of exceptions to the 10% early withdraw penalty.
Took money from a 401K to pay sons college tuition fall 2017. I paid tax on it. Do I have to pay penalty if I am 58 yr old all money was paid to the college?
Yes. You will be required to pay the 10% penalty since you were not aged 59 1/2 when you withdrew the funds and paying college funds is not listed as a qualifying exception for a 401-K plan.
Please view the IRS link below to see a list of exceptions to the 10% early withdraw penalty.
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