Higher Education penalty exception for IRA withdrawal

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  • JoeyVegas
    Junior Member
    • Mar 2020
    • 20

    #1

    Higher Education penalty exception for IRA withdrawal

    Publication 590-B says amounts paid for higher education can escape the 10% penalty on early IRA withdrawals. "The education must be for you, your spouse, or the children or grandchildren of you or your spouse." There is no mention at all of a stipulation that the child must be claimed as a dependent on taxpayer's return. My question is can a young parent withdraw IRA money to pay her child's college expenses and avoid the 10% penalty even though her child is NOT her dependent?
  • New York Enrolled Agent
    Senior Member
    • Nov 2006
    • 1531

    #2
    Originally posted by JoeyVegas
    Publication 590-B says amounts paid for higher education can escape the 10% penalty on early IRA withdrawals. "The education must be for you, your spouse, or the children or grandchildren of you or your spouse." There is no mention at all of a stipulation that the child must be claimed as a dependent on taxpayer's return. My question is can a young parent withdraw IRA money to pay her child's college expenses and avoid the 10% penalty even though her child is NOT her dependent?
    IRC 72(t)(7)(A) does not require the individual be a dependent

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