Colmatt
Level 5
‎04-09-2022 10:42 AM

I know the answer is no...just need someone to knock it into my head.....401-K distributions used for college are not an exception to the 10% penalty.....

0 Cheers
Dusty2
Level 7
‎04-09-2022 10:53 AM

Sounds like you understand the rules on that correctly.

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rbynaker
Level 14
‎04-09-2022 11:03 AM

Correct.  The rules are dumb.  Roll the 401(k) over into an IRA then take an IRA distribution and no penalty.  Take the money straight out of the 401(k), penalty.

Colmatt
Level 5
‎04-09-2022 11:10 AM

If they only asked before they did anything!!

 

The-Tax-Lady
Level 9
‎04-09-2022 11:31 AM

That would be a Tax Season Miracle! 😂

dkh
Level 15
‎04-09-2022 11:44 AM
@Colmatt wrote:

If they only asked before they did anything!!

 

 AND if only they weren't frustrated when we don't have a magical fix