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New Member

Can I avoid the 10% early withdrawal penalty if I put the money went to higher education?

I pay for my college classes out of pocket and the money I withdrew from the IRA went towards the classes I paid already. My friend gave me the money for school until I could pay her back but she ended up needing the money sooner so I had to take out the money to pay her back. would this qualify me to avoid the 10% early withdrawal penalty?

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Expert Alumni

Can I avoid the 10% early withdrawal penalty if I put the money went to higher education?

Yes, there is a  10% early withdrawal penalty exception for Qualified higher education expenses.  See this Turbo Tax link for more details. 

 

 

 

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