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Retirement tax questions
Using the funds for qualified education expenses exempts the distribution from an early-distribution penalty, not from income tax, and only applies to distributions from IRAs, not from a 401(k). If your 401(k) permits you to take an ordinary distribution, you can roll the distribution over to an IRA and then take a distribution from the IRA to avoid the early-distribution penalty.
‎January 31, 2024
11:54 AM