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R
Robert_Lewis
February 9, 2025
Question

I took money out of my IRA for college tuition, why is this subject to the 10% penalty for early withdrawal?

  • February 9, 2025
  • 1 reply
  • 0 views
I took money out of my IRA for college tuition, why is this subject to the 10% penalty for early withdrawal?

    1 reply

    M
    MindyB
    February 9, 2025

    It is excluded from the penalty, but you do need to indicate that you used the money for tuition.

     

    Here's how to do this in TurboTax Online:

     

    • Navigate to Federal > Wages & Income > IRA, 401(k), Pension Plan Withdrawals (1099-R) Add/Edit
    • Your withdrawal will be shown in a summary on a screen that says "Here's your 1099-R info"
    • Choose "Continue"
    • Continue through the interview until you arrive at a screen that says "Did you use your IRA to pay for any of these expenses?"
    • Here, enter the amount of the withdrawal spent on tuition.

     

     

     

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