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Received 1099R. I had to do early with drawl retirement money from my 401k to pay sons out of state off campus living expenses.

Forum|Forum|7 years ago
June 1, 2019
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I had to do early withdrawl from my 401k retirement to pay for sons out of state off campus living expenses. I received the 1099R and am paying penalty, but how can see if these costs are deductible.

Best answer by DoninGA

Room and board are not eligible education expenses. See this IRS website for qualified education expenses - https://www.irs.gov/individuals/qualified-ed-expenses

There is not an exception to the 10% early withdrawal penalty for a distribution from a 401(k) account for living expenses. See this IRS website for early withdrawal exceptions from accounts other than an IRA - https://www.irs.gov/taxtopics/tc558.html

DoninGAAnswer

Employee

Room and board are not eligible education expenses. See this IRS website for qualified education expenses - https://www.irs.gov/individuals/qualified-ed-expenses

There is not an exception to the 10% early withdrawal penalty for a distribution from a 401(k) account for living expenses. See this IRS website for early withdrawal exceptions from accounts other than an IRA - https://www.irs.gov/taxtopics/tc558.html