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Level 3
December 7, 2019
Solved

401k plan administrator told taxpayer distribution from 401k for education exempt from penalty

  • December 7, 2019
  • 2 replies
  • 22 views
Any recourse for the taxpayer  - money was used to pay for qualified education expenses
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Best answer by sjrcpa

Did the client get it in writing from the plan administrator? The recourse is there.

2 replies

sjrcpa
sjrcpaAnswer
Level 15
December 7, 2019

Did the client get it in writing from the plan administrator? The recourse is there.

The more I know the more I don’t know.
itonewbie
Level 15
December 7, 2019

That's not correct.  §72(t)(2)(E) is very specific that the provision applies only to individual retirement plans. 

---------------------------------------------------------------------------------Still an AllStar