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Level 1
posted Feb 6, 2024 6:26:02 AM

I withdrew money from my 401K to pay for my daughters college tution. Does that qualify for the permissible section 414w withdrawl?

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1 Replies
Expert Alumni
Feb 6, 2024 6:34:48 AM

That would depend on if the distribution was made within 90 days of electing to participate in making contributions. 

Additionally, paying education expenses can waive the penalty tax on a distribution from an IRA but not from a 401(k).