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New Member
posted Jun 6, 2019 6:55:43 AM

I am under 59 1/2 and would like to close Roth IRA to pay for tuition. What is the process for documenting this, and will I be exempt from taxes?

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1 Best answer
Level 15
Jun 6, 2019 6:55:45 AM

Form 8606 is used to calculate the taxable portion of the withdrawal (or document that none of it is taxable). Form 5329 is used to claim an exception (the education exception, in your case) to the 10% early withdrawal penalty, if needed. If none of the distribution is taxable, the penalty is 0 and form 5329 is not needed.

In TurboTax (TT), you enter the 1099-R,  that you will receive from the IRA custodian; then follow the interview to give TT the info to calculate the taxable portion and penalty exception.

1 Replies
Level 15
Jun 6, 2019 6:55:45 AM

Form 8606 is used to calculate the taxable portion of the withdrawal (or document that none of it is taxable). Form 5329 is used to claim an exception (the education exception, in your case) to the 10% early withdrawal penalty, if needed. If none of the distribution is taxable, the penalty is 0 and form 5329 is not needed.

In TurboTax (TT), you enter the 1099-R,  that you will receive from the IRA custodian; then follow the interview to give TT the info to calculate the taxable portion and penalty exception.