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April 3, 2025
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Received Distribution from Retirement Plan Prior to 59 1/2 to pay for Student Loan. Do I need to pay the Penalty?

  • April 3, 2025
  • 1 reply
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    Best answer by MayaD

    Yes. You must pay an additional 10% early withdrawal tax unless an exception applies.

    Exceptions to the 10% additional tax.

    1 reply

    MayaDAnswer
    April 3, 2025

    Yes. You must pay an additional 10% early withdrawal tax unless an exception applies.

    Exceptions to the 10% additional tax.

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    Employee
    April 3, 2025

    ... and using the funds to pay a student loan is not an exception to the penalty.