ROTH IRA for education- Tax liability?

[durgaarani]

Held Roth IRA for more than 5 years. under 59. Will have to use the money to pay for child's college education. Are the earnings taxed? Do I have the check sent directly to college? How do I know in advance how much is my tax liability?

[macuser_22]

First, your own prior contributions can always be withdrawn tax and penalty free.   Earnings  can be withdrawn penalty free if used to pay for higher education.

See IRS Pub 590B.

https://www.irs.gov/publications/p590b/ch01.html#en_US_2016_publink1000230896

Higher education expenses.   Even if you are under age 59½, if you paid expenses for higher education during the year, part (or all) of any distribution may not be subject to the 10% additional tax. The part not subject to the tax is generally the amount that is not more than the qualified higher education expenses (defined next) for the year for education furnished at an eligible educational institution (defined below). The education must be for you, your spouse, or the children or grandchildren of you or your spouse.

[Hal_Al]

Yes, the earnings are still taxed. Education is only an exception to the 10% early withdrawal penalty.
There is no requirement to send the money directly to the school. I suspect the IRA custodian would not be willing to even do that

[marcandre123]

Just to double-check, as I plan to debit my Roth IRA account to pay for graduate school fees (and therefore avoid taking additional loans).

I have not held my Roth IRA for more than 5 years, and am currently 28 years old. If I debit my Roth IRA account to pay for graduate school fees, do I have to pay the 10% withdrawal? In addition, does my distribution get taxed as regular income?

Thank you for your help.

[Critter]

The earnings will be taxed as ordinary income and the IRA custodian will probably want to withhold at least 10% in taxes which may or may not be enough  HOWEVER they are exempt from the 10% penalty due to the education exemption on form 5329.  

[dmertz]

Tax withholding on an IRA distribution can be declined, but that might mean that you will owe more with your tax return and if not enough is withheld or paid with estimated tax payments you could be subject to an underpayment penalty.