Is an early Roth IRA wihdrawal for education subject to regular income tax on contributions and earnings?

[JDC]

I know that we will avoid the 10% tax penalty, but I'm confused about whether we will owe regular income tax on the withdrawal.

[macuser_22 · Accepted solution]

Withdrawing your own contributions are never subject to tax or the 10% penalty.  Earnings might be taxable if you did not have a Roth for at least 5 years.

[Tall-Texan2]

I've had the Roth for more than 5 years.  With that in mind, you're saying my earnings would be nontaxable?

[macuser_22]

If you are under age 59 1/2 then your own previous contributions are not taxable but  any earnings withdrawn are taxable but up can be excluded from the 10% penalty if  used for education.

See IRS Pub 590B
<a rel="nofollow" target="_blank" href="https://www.irs.gov/publications/p590b/ch02.html#en_US_2016_publink1000231057">https://www.irs.gov/p...>

[JDC]

I know that my regular IRA early distribution should not be subject to the 10% tax due to use for education, but turbotax isn't asking any questions to allow me to enter info about college expenses or educational uses

[macuser_22]

You must have missed the question or did not continue the interview after the 1099-R summary screen.

[JDC]

I hear what you are saying, but after the summary I have to check a box for qualified retirement plan, then it goes to a screen with a list of situations--none of which mention education, and then it takes me to a screen that says they couldn't lower my taxes.

[macuser_22]

What code is in box 7 on the 1099-R?
Is the IRA/SEP/SIMPLE box checked?

Only IRA's will give you the "Higher Education " box (right under the "Equal periodic payments" box) on the screen titled "Did you use your IRA to pay for any of these expenses?"

A Roth IRA should have a code J in box 7 if you are under age 59 1/2.
A Traditional IRA should have a code 1 in box 7 and the IRA box checked.

If something else then this does not appear to be an IRA distribution.