IRA withdrawals for grandson medical school
Thank you for the answer, however this is not for early withdrawal. He is age 78 and this inquiry is if he can w/d $ tax favored to pay for grandson’s medical school. Is there any way he can take w/d and not pay tax ifg it is used for medical school tuition? JG ❓
Permalink Submitted by Alan Spross on Thu, 2008-01-10 22:05
No. He must report the taxable income, but he could satisfy his RMD with the distribution. In addition, if he pays grandson’s tuition directly to the school, the amount is exempt from gift tax requirements. There might be an education credit, but only if he can claim the exemption for the grandchild.
Note: Recommend that follow up posts be added to the original thread, instead of starting new ones. Makes it easier for all to follow the issues. Thanks.