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Kinta1
New Member

Using an early IRA withdrawal for private high school tuition does not avoid the 10% early WD penalty for Federal, or 2.5% for state of CA, ? Just post high school?

 
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3 Replies
KrisD15
Expert Alumni

Using an early IRA withdrawal for private high school tuition does not avoid the 10% early WD penalty for Federal, or 2.5% for state of CA, ? Just post high school?

Correct, only "Qualified Higher Education". 

 

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Kinta1
New Member

Using an early IRA withdrawal for private high school tuition does not avoid the 10% early WD penalty for Federal, or 2.5% for state of CA, ? Just post high school?

Can you please define Qualified Higher Education?

AmyC
Expert Alumni

Using an early IRA withdrawal for private high school tuition does not avoid the 10% early WD penalty for Federal, or 2.5% for state of CA, ? Just post high school?

To avoid paying a 10% early withdrawal penalty, the IRS requires proof that the student is attending an eligible institution. See Eligible Educational Institution - Internal Revenue Service

 

Qualified expenses are amounts paid for tuition, fees and other related expense for an eligible student that are required for enrollment or attendance at an eligible educational institution. You must pay the expenses for an academic period* that starts during the tax year or the first three months of the next tax year. See Qualified Education Expenses - Internal Revenue Service

 

Topic no. 557, Additional tax on early distributions states: Not in excess of your qualified higher education expenses

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