College room and board

[LCP]

Colleges publish a figure that can be used for room and board for purposes of Sec 529 plan distributions when the student lives off campus.

Can the same concept be used for the exception on early distributions from an IRA?

[LCP]

I found an article that states that the institutions allowance for room and board can be used for the 72t2e exclusion.

[mactoolsix]

Looks like that's what they want

I found an article that states that the institutions allowance for room and board can be used for the 72t2e exclusion.

From Pub 970

http://www.irs.gov/publications/p970/ch09.html#en_US_2010_publink1000178586

Qualified education expenses. For purposes of the 10% additional tax, these expenses are tuition, fees, books, supplies, and equipment required for enrollment or attendance at an eligible educational institution. They also include expenses for special needs services incurred by or for special needs students in connection with their enrollment or attendance.

In addition, if the student is at least a half-time student, room and board are qualified education expenses.

The expense for room and board qualifies only to the extent that it is not more than the greater of the following two amounts.

1. The allowance for room and board, as determined by the eligible educational institution, that was included in the cost of attendance (for federal financial aid purposes) for a particular academic period and living arrangement of the student.

2. The actual amount charged if the student is residing in housing owned or operated by the eligible educational institution.

You will need to contact the eligible educational institution for qualified room and board costs.