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Retirement tax questions
Using the money to pay for school is not an exception to the early-distribution penalty on a distribution from a 401(k). That exception only applies to distributions from IRAs. A 401(k) is not an IRA. If the IRS is assessing an early-distribution penalty, you owe the penalty and you can just pay it unless you have some other exception that applies that could be reported on From 5329.
March 23, 2020
5:00 PM