Question

Paying for student loans with retirement distribution is it acceptable use of funds to lower early withdrawl penalty?

Received a lump sum distribution from LA State employees group.

Used Lump sum to pay off student loans

Can I use as an exception

Employee

Payment of student loans, which is a personal loan, is not an exception to the early withdrawal penalty.

See this IRS tax topic for exceptions to the penalty for plans other than an IRA - https://www.irs.gov/taxtopics/tc558

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