Does the lease payment to an off campus housing complex meet the qualified room and board education expenses to avoid the 10% penalty for early IRA withdrawal?

[dwgray]

IRS pub 970 states:  The expense for room and board qualifies only to the extent that it isn't more than the greater of the following two amounts.            

1. The allowance for room and board, as determined by the eligible educational institution, that was included in the cost of attendance (for federal financial aid purposes) for a particular academic period and living arrangement of the student.

2. The actual amount charged if the student is residing in housing owned or operated by the eligible educational institution.
   

[Texas Roger · Accepted solution]

In determining your exclusion amount, you can claim an amount up to the amount you would have been charged by the educational institution to reside in housing owned or operated by the institution. 

[Hal_Al]

The answer to your question is, generally, yes. But you are limited to the amount that the college charges for room.Board is a separet issue, but basically the same rule applies.

For example, you pay $10,000 for apartment rental. The college charges $8,000 for a dormitory room. You take $10,000 out of your IRA to pay rent. $2,000 (10K-8K) is subject to penalty.