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posted Jan 21, 2021 12:14:37 PM

I took an early withdrawal from IRA for my son's college. The broker sent me 1099-R that says there is no known exception. How do I prove I don't have to pay a penalty?

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1 Replies
Level 15
Jan 21, 2021 12:21:49 PM

After entering the Form 1099-R (make sure that you selected that this is an IRA) you will go through a series of screens asking about the distribution.  On the screen labeled Did you use your IRA to pay for any of these expenses?  Enter the amount used for your son's college education in the box labeled Higher Education and Continue.  This will remove the 10% early distribution penalty.