401- K withdrawals for college

[Colmatt]

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.....

[Dusty2 · Accepted solution]

Sounds like you understand the rules on that correctly.

[rbynaker]

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]

If they only asked before they did anything!!

[The-Tax-Lady]

That would be a Tax Season Miracle! 😂

[dkh]

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@Colmatt wrote:

If they only asked before they did anything!!

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