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Education
Withdrawing from your 401(k) to pay university tuition is taxable income, and if you’re under age 59½, it’s usually also subject to a 10% early withdrawal penalty.
Unlike IRAs, 401(k) plans do NOT have a tuition exception to the 10% penalty. The higher education exception applies to IRAs only, not 401(k)s.
Additional tax on early distributions from retirement plans other than IRAs
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February 22, 2026
7:35 AM