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Level 2

Question

Early IRA withdrawl for college

Forum|Forum|1 year ago
February 27, 2025
1 reply
1 view

How do you designate early IRA distribution for college tuition in desktop software? There is no Higher Education box available

TurboTax Home & Biz Windows

Level 15

The withdrawal has to be from an IRA for penalty relief for education expenses. It doesn't apply to 401-K withdrawals, so you need to indicate the withdrawal was from an IRA by checking that box on the Form 1099-R input if that applies to you.

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khatcher446Author

Level 2

So, are you saying that if this retirement account is an employee sponsored 401-K it is not allowed to be used for college tuition? Just trying to waive the federal penalty fee. I understand that we have to pay taxes on it.

Thank you!

Level 15

"are you saying that if this retirement account is an employee sponsored 401-K it is not allowed to be used for college tuition?"

That is correct. This particular penalty exception only applies to distributions from IRAs. A 401(k) is not an IRA.

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