Is an early withdrawal from Massachusetts Teachers' Retirement subject to the 10% tax penalty if the money is used to fund a child's qualified higher education costs?

[KatrinaB · Accepted solution]

Yes. It is subject to the 10% tax penalty as paying higher education expenses is not one of the penalty exceptions listed on page 18 of the Massachusetts link below.

http://www.mass.gov/mtrs/docs/publications/qalumpsum.pdf