Can we avoid the 10% penalty for an IRA withdrawal if we used it towards our child's college tuition?

Yes, money withdrawn from an IRA for tuition payment for you, your spouse and your children is exempt from the early withdrawal penalty of 10%.

Please read this TurboTax Help topic for more information.

In TurboTax, please follow these steps:

1. After you have entered all your forms 1099-R, on the summary page Review your 1099-R Info, click Continue
2. Follow the interview until you arrive at the page titled Did you use your IRA to pay for any of these expenses?
3. Enter the amount of your education expenses in the box next to Higher education and click Continue
4. Your early withdrawal penalty will be waived.