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haharris
New Member

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?

 
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KatrinaB
Intuit Alumni

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.

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

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KatrinaB
Intuit Alumni

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.

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

View solution in original post

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