MinhT1
Expert Alumni

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.

 

  1. After you have entered all your forms 1099-R, on the summary page Review your 1099-R Info, click Continue 
  2. Follow the interview until you arrive at the page titled Did you use your IRA to pay for any of these expenses?
  3. Enter the amount of your education expenses in the box next to Higher education and click Continue
  4. Your early withdrawal penalty will be waived.
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