When can an individual first make a withdrawal from an IRA to pay for qualified higher education expenses without paying the 10 percent early withdrawal tax?
An individual can make withdrawals from his/her IRA to pay for qualified higher education expenses without paying the 10 percent early withdrawal tax. See Notice 97-53, 1997-40 IRB. The 10 percent early withdrawal tax does not apply to a distribution from an IRA to the extent that the amount of the distribution does not exceed the qualified higher education expenses for the taxpayer, the taxpayer’s spouse, and the child or grandchild of the taxpayer or the taxpayer’s spouse at an eligible educational institution. For purposes of this rule, the term “qualified higher education expenses” means tuition, fees, books, supplies and equipment required for the enrollment or attendance of the student at an eligible educational institution. Qualified higher education expenses also include room and board if the student is enrolled at least half-time. Qualified higher education expenses paid with an individual’s earnings, a loan, a gift, an inheritance given to the student or the individual claimi
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