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March 30, 2024
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I took a $70k IRA distribution for higher education, which left $50k after taxes. Since the education cost was only $50,000 do I Have to pay the 10% penalty on $20,000?

  • March 30, 2024
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Best answer by dmertz

Yes, the $20,000 is subject to an early-distribution penalty unless some exception applies.  You didn't spend this money on education expenses, so that exception does not apply.

1 reply

dmertzAnswer
Employee
March 30, 2024

Yes, the $20,000 is subject to an early-distribution penalty unless some exception applies.  You didn't spend this money on education expenses, so that exception does not apply.