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posted May 31, 2019 11:14:51 PM

Received 1099R. I had to do early with drawl retirement money from my 401k to pay sons out of state off campus living expenses.

I had to do early withdrawl from my 401k retirement to pay for sons out of state off campus living expenses. I received the 1099R and am paying penalty, but how can see if these costs are deductible.

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Level 15
May 31, 2019 11:14:53 PM

Room and board are not eligible education expenses.  See this IRS website for qualified education expenses - https://www.irs.gov/individuals/qualified-ed-expenses

There is not an exception to the 10% early withdrawal penalty for a distribution from a 401(k) account for living expenses.  See this IRS website for early withdrawal exceptions from accounts other than an IRA - https://www.irs.gov/taxtopics/tc558.html

1 Replies
Level 15
May 31, 2019 11:14:53 PM

Room and board are not eligible education expenses.  See this IRS website for qualified education expenses - https://www.irs.gov/individuals/qualified-ed-expenses

There is not an exception to the 10% early withdrawal penalty for a distribution from a 401(k) account for living expenses.  See this IRS website for early withdrawal exceptions from accounts other than an IRA - https://www.irs.gov/taxtopics/tc558.html