I am using my Roth IRA for my graduate program tuition in 2020 fall. My employer can reimburse up to $5,250 annually for my tuition (probably in 2021 spring), which is allowed by IRS's educational assistance rule. However, this reimbursement only happens after I pass the exams of the semester, so I have to use my Roth IRA fund.
My questions are:
1. How should I deal with the $5,250 employer reimbursement? Should I put it back to Roth (is that allowed)? Or just keep it in my non-retirement account, such as a checking/savings account.
2. Is that allowed by IRS to first use Roth IRA for tuition, then get an employer educational reimbursement? After all, it looks like a "withdrawal" of Roth IRA and a take-advantage of this no-penalty educational withdrawal.
3. My Roth was from a conversion of my previous company's 401K (first to Rollover IRA, then to Roth IRA) in 2019. I will pay income tax for this conversion for 2019 tax filing. I did some research, but I just want to confirm: I can use the conversion part with no tax and penalty for education, and I can use the earning of Roth IRA with no penalty for education but with income tax.
Thanks!
