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lowella23
New Member

401k early withdrawal

My husband withdrew money from his 401k last year and we used it to pay my loan from my 401k retirement. does that count as transferring to another qualified retirement account? Also, some of it was used for our daughter's college tuition but I don't see where I can enter it. Thanks for the help.

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1 Reply

401k early withdrawal

No, paying off a loan is not transferring the distribution to another retirement account.  Education expenses are not an exception to the 10% early distribution penalty if the withdrawal is from a 401(k) account.  That is only available if the withdrawal was from an IRA.

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