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csongt
New Member

Received Distribution from Retirement Plan Prior to 59 1/2 to pay for Student Loan. Do I need to pay the Penalty?

 
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2 Replies
MayaD
Employee Tax Expert

Received Distribution from Retirement Plan Prior to 59 1/2 to pay for Student Loan. Do I need to pay the Penalty?

Yes. You must pay an additional 10% early withdrawal tax unless an exception applies.

Exceptions to the 10% additional tax.

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dmertz
Level 15

Received Distribution from Retirement Plan Prior to 59 1/2 to pay for Student Loan. Do I need to pay the Penalty?

... and using the funds to pay a student loan is not an exception to the penalty.

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