No, paying off your student loan won't qualify for the exemption of the 10% early withdrawal penalty.
Please be aware, you can withdraw contributions you made to your Roth IRA anytime, tax- and penalty-free. If you withdraw more than your contributions (earnings) then you can be exempt from the 10% early withdrawal penalty if you use the distribution for qualified higher education expenses.
- Login to your TurboTax Account
- Click on "Search" on the top and type “1099-R”
- Click on “Jump to 1099-R” and enter all your 1099-Rs
- Click "Continue" on the "Review your 1099-R info" screen
- Answer all the questions and make sure you enter the net contributions prior to 2022 on the "Enter Prior Year Roth IRA Contributions" screen
- Continue until "Did you use your IRA to pay for any of these expenses?" screen (this screen won't come up if you only withdrew your contributions) and enter the amount of qualified higher education expenses.
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