Question

Using an early IRA withdrawal for private high school tuition does not avoid the 10% early WD penalty for Federal, or 2.5% for state of CA, ? Just post high school?

Forum|Forum|2 years ago
April 12, 2024
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TurboTax Free Edition Online

Correct, only "Qualified Higher Education".

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K

Kinta1Author

Can you please define Qualified Higher Education?

AmyC

Employee

To avoid paying a 10% early withdrawal penalty, the IRS requires proof that the student is attending an eligible institution. See Eligible Educational Institution - Internal Revenue Service

Qualified expenses are amounts paid for tuition, fees and other related expense for an eligible student that are required for enrollment or attendance at an eligible educational institution. You must pay the expenses for an academic period* that starts during the tax year or the first three months of the next tax year. See Qualified Education Expenses - Internal Revenue Service

Topic no. 557, Additional tax on early distributions states: Not in excess of your qualified higher education expenses

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