What taxes and fees will I pay if I make a withdraw from my 403(b) account to pay for higher education before I'm 59.5 years old?
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While I am not sure of the fees you may be for the distribution, I do hope they are de minimis. There is nothing worse, then being charged a fee to access your money.
So since you are under the age of 59.5 there will be a penalty for the distribution from the 403(b). The penalty exception only applies to IRAs. So you will owe a 10% penalty.
The distribution will be included in the calculation of adjusted gross income, that will then after subtracting the standard or itemized deductions will result in taxable income. I would suggest you use Tax Caster to help you. Tax Caster will not handle the penalty calculation.
Keep in mind that you may also be eligible for a tax credit for education. See this article:
What Is the American Opportunity Tax Credit?
and this article:
What Is the Lifetime Learning Tax Credit?
Thank you for your question @Jax02
All the best,
Marc T.
TurboTax Live Tax Expert
27 Years of Experience Helping Clients
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