It depends. For Roth IRAs, you can always withdraw post-tax contributions (also known as "basis") from your Roth IRA without penalty. You can also make tax-free withdrawals on any additional earnings in your Roth IRA unless either of the following are true:You're making the withdrawal less than 5 years after establishing the Roth.You're making an early withdrawal (before age 59½) without the exception for death, disability, or the $10,000 first-time homebuyer distribution.In a nutshell, as long as your Roth has been open for at least 5 years, you can withdraw as much as you want (if you're 59½ or older) or anything up to the amount you put in (if you're under 59½) without any taxes or penalties..If you are under 59½, you can claim an exemption from the early withdrawal penalty for higher education expenses. Please see the following TurboTax FAQ for more information about penalty relief. https://ttlc.intuit.com/replies/3301632

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slpanne

Level 1

Question

Is an early distribution from a Roth IRA that is completely used for college expenses taxable?

1 reply
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TurboTax Deluxe Online

Anonymous

It depends. For Roth IRAs, you can always withdraw post-tax contributions (also known as "basis") from your Roth IRA without penalty. You can also make tax-free withdrawals on any additional earnings in your Roth IRA unless either of the following are true:

You're making the withdrawal less than 5 years after establishing the Roth.
You're making an early withdrawal (before age 59½) without the exception for death, disability, or the $10,000 first-time homebuyer distribution.

In a nutshell, as long as your Roth has been open for at least 5 years, you can withdraw as much as you want (if you're 59½ or older) or anything up to the amount you put in (if you're under 59½) without any taxes or penalties..

If you are under 59½, you can claim an exemption from the early withdrawal penalty for higher education expenses. Please see the following TurboTax FAQ for more information about penalty relief. https://ttlc.intuit.com/replies/3301632