AnnetteB6
Expert Alumni

Retirement tax questions

If you took an early distribution from an IRA to pay for college expenses, then you can apply an exception to the early distribution penalty.

 

If the distribution was from a retirement plan (such as a 401k), then paying higher education expenses is not a valid exception.  

 

After you have entered the information on your Form 1099-R reporting the distribution, one of the follow-up questions will be a list of exceptions to the early distribution penalty.  Look for the box beside Higher Education and enter the amount of the distribution that was used for this purpose.

 

Take a look at the following TurboTax help articles to learn more:

 

Are there exceptions to the early distribution penalty on an IRA?

 

What are the exceptions to the penalty for an early withdrawal from my 401(k)?

@Tnbwills 

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