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posted Jun 1, 2019 12:29:34 PM

Are credit card fees for college tuition payments allowable expenses for 529 purposes and early IRA early withdrawal penalty exceptions?

Are credit card fees for college tuition payments allowable expenses for 529 purposes and early IRA early withdrawal penalty exceptions? 

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1 Replies
Intuit Alumni
Jun 1, 2019 12:29:35 PM

No.  Although I do not have a resource to back this up, I would say that it is highly unlikely that the IRS would allow credit card fees to be used as a qualified expense for 529 plan distributions or for education expenses paid to reduce an early withdrawal penalty.