MinhT1
Expert Alumni

Education

The exception to the 10% tax penalty on early distributions for qualified higher education expenses only applies to IRA, SEP and Simple IRA plans. It does not apply to withdrawals for 401(k) plans.

 

Please see this IRS document for more information.

 

In any case, you have to apply the gross distribution to the education expenses. The tax withheld is for you to take care of.

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