Penalty-Free IRA Distributions to Pay for Education

Did you know you can take an IRA distribution without a tax penalty to pay for college?

You can avoid the 10% penalty tax if the distribution is to pay qualified education expenses  for your spouse,  children,  grandchildren, or yourself.

The amount of the withdrawal is generally limited to $10,000 and must be included in your income for income tax purposes.

Qualified education expenses include tuition, fees, books, supplies, and equipment required for enrollment or attendance at any college or post-secondary educational institution. Room and board also qualify, although subject to certain limitations.

Please contact us to discuss the higher education tax saving strategies that can benefit your particular situation.