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Thread: Roth Withdrawal for College

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  1. #3
    Join Date
    Oct 2015
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    TheTaxBook adds the following: "Caution: To qualify, expenses must be paid in same year as IRA distribution. (Duronio, T.C. Memo. 2007-90)".

    The earnings (everything above the basis) will still be subject to ordinary tax, even if not the penalty.

    Although it wasn't asked, I think this is a very bad idea from a financial planning standpoint. For a 50+ year old, money already in a Roth has a lot of value, I think. Taking it out for a child's college and paying current tax on it seems like it could greatly harm the taxpayer's future retirement funding. Probably much better to try for student loans in the name of the student; one can always help pay the interest, or help pay down the principal later.
    Last edited by Rapid Robert; 05-22-2018 at 01:05 PM.

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