Retirement for education

[bekzm]

A teacher pulled out of her retirment to pay for her daughters college. I'm saying the 10% penalty applies. Is the exception only apply to IRA's not her retirement for education?
I think she got to pull it out due to it being education but now the 10% will apply for the IRS - yes/no. So much going on.
Thanks

[joanmcq]

The education exemption from the penalty only applies to IRAs.

[Roland Slugg]

Penalty DOES apply

Dear bekzm

You are correct. The exception to the penalty for early distributions used for higher education only applies to amounts withdrawn from an IRA, not from 401(k) or other employer retirement plans. (Code §72(t))

[bekzm]

Thany you

Thanks for all your help - sometimes talking (writing) it out helps then to have friends like you - really do help especailly when tired.
Thanks