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401- K withdrawals for college

Colmatt
Level 5

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.....

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Dusty2
Level 7

Sounds like you understand the rules on that correctly.

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5 Comments 5
Dusty2
Level 7

Sounds like you understand the rules on that correctly.

rbynaker
Level 13

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

If they only asked before they did anything!!

 

The-Tax-Lady
Level 9

That would be a Tax Season Miracle! 😂

dkh
Level 15

@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