I'm wanting to do an early withdraw from a ROTH IRA for higher education expenses for my daughter. How do I know if I meet the exception to avoid 10% penalty?

[taral717]

When/where do I report the withdrawal and who decides if I meet the criteria for no penalty or not?

[Hal_Al · Accepted solution]

You meet the exception if you  paid for qualified educational expenses in the same year that the withdrawal was made. Your daughter does not have to be your dependent, only your child or grandchild. Room  & Board are also qualified expenses, if she was, at least, a half time student.

You enter the 1099-R, you get for the withdrawal and follow the TurboTax (TT)  interview. You (and the TT interview) decide whether you meet the exception and TT puts the exception on form 5329. 

You are allowed to withdraw your contributions, tax and penalty free. Only if you withdraw more than your contributions, will the issue of penalty exceptions come up.