10% exemption before 59 1/2
Hi. Does the 10% exemption before 59 1/2 from an IRA or 401k for education expenses include student loan payments? Thanks in advance.
Hi. Does the 10% exemption before 59 1/2 from an IRA or 401k for education expenses include student loan payments? Thanks in advance.
Permalink Submitted by mk foss on Fri, 2014-10-31 19:01
The 10% exemption does not apply to loan payments. It is only good for current education paid in the same tax year as the withdrawal.