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Retirement tax questions
The exception to the 10% penalty for withdrawals for higher education applies only to withdrawals from an IRA account, and not from a 401(k) account.
Please read this IRS document for more information.
If this applies to you, here are the steps to follow in TurboTax.
- After you have entered all your forms 1099-R, on the summary page Review your 1099-R Info, click Continue
- Follow the interview until you arrive at the page titled Did you use your IRA to pay for any of these expenses?
- Enter the amount of your education expenses in the box next to Higher education and click Continue
- Your early withdrawal penalty will be waived.
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‎January 31, 2024
11:53 AM