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Is there anyway to save on taxes if we took $110k out of an IRA if $95k of it was used to pay off educational loans? Our tax bill is going to be about $30k!

 
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JohnB5677
Employee Tax Expert

Is there anyway to save on taxes if we took $110k out of an IRA if $95k of it was used to pay off educational loans? Our tax bill is going to be about $30k!

Unfortunately, In addition to the regular tax, there will be an early-distribution penalty of 10% if you used an IRA to pay student loans 

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1 Reply
JohnB5677
Employee Tax Expert

Is there anyway to save on taxes if we took $110k out of an IRA if $95k of it was used to pay off educational loans? Our tax bill is going to be about $30k!

Unfortunately, In addition to the regular tax, there will be an early-distribution penalty of 10% if you used an IRA to pay student loans 

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
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