The withdrawal has to be from an IRA for penalty relief for education expenses. It doesn't apply to 401-K withdrawals, so you need to indicate the withdrawal was from an IRA by checking that box on the Form 1099-R input if that applies to you.
So, are you saying that if this retirement account is an employee sponsored 401-K it is not allowed to be used for college tuition? Just trying to waive the federal penalty fee. I understand that we have to pay taxes on it.
Thank you!
"are you saying that if this retirement account is an employee sponsored 401-K it is not allowed to be used for college tuition?"
That is correct. This particular penalty exception only applies to distributions from IRAs. A 401(k) is not an IRA.