Comments on: Is it possible to withdraw the money from Traditional IRA account for college? http://www.iraroth.net/2010/03/is-it-possible-to-withdraw-the-money-from-traditional-ira-account-for-college/ IRA Questions and Answers Thu, 20 Oct 2011 14:36:38 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Todd http://www.iraroth.net/2010/03/is-it-possible-to-withdraw-the-money-from-traditional-ira-account-for-college/comment-page-1/#comment-1291 Todd Sun, 02 May 2010 15:00:40 +0000 http://www.iraroth.net/2010/03/ira-accounts-can-you-withdraw-from-a-traditional-ira-for-college/#comment-1291 Is it allowed to use traditional ira funds to purchase a dividend paying whole life policy without penalties and fees? Is it allowed to use traditional ira funds to purchase a dividend paying whole life policy without penalties and fees?

]]> By: doreen k http://www.iraroth.net/2010/03/is-it-possible-to-withdraw-the-money-from-traditional-ira-account-for-college/comment-page-1/#comment-898 doreen k Thu, 25 Mar 2010 23:36:56 +0000 http://www.iraroth.net/2010/03/ira-accounts-can-you-withdraw-from-a-traditional-ira-for-college/#comment-898 Go to www.irs.gov and search for Publication 590, Individual Retirement Arrangements, to confirm the information I'm sharing with you. The IRS server is really overloaded right now, so you might have to be persistent in trying to access the information. You can withdraw from a traditional IRA to pay for higher education expenses without paying the normal 10% tax penalty; however, the amount withdrawn may be subject to regular income tax. If your father was able to take a tax deduction at the times he made his contributions, then the amounts withdrawn have not been taxed previously and would be subject to tax in the year he takes the distribution. If your father made non-deductible contributions to his traditional IRA, then only the portion of the withdrawal that represented the earnings would be subject to income tax. Go to http://www.irs.gov and search for Publication 590, Individual Retirement Arrangements, to confirm the information I’m sharing with you. The IRS server is really overloaded right now, so you might have to be persistent in trying to access the information.

You can withdraw from a traditional IRA to pay for higher education expenses without paying the normal 10% tax penalty; however, the amount withdrawn may be subject to regular income tax.

If your father was able to take a tax deduction at the times he made his contributions, then the amounts withdrawn have not been taxed previously and would be subject to tax in the year he takes the distribution. If your father made non-deductible contributions to his traditional IRA, then only the portion of the withdrawal that represented the earnings would be subject to income tax.

]]> By: walt17jr http://www.iraroth.net/2010/03/is-it-possible-to-withdraw-the-money-from-traditional-ira-account-for-college/comment-page-1/#comment-897 walt17jr Thu, 25 Mar 2010 23:26:08 +0000 http://www.iraroth.net/2010/03/ira-accounts-can-you-withdraw-from-a-traditional-ira-for-college/#comment-897 The answer is probably yes. IRS publication 970, chapter 9 will give you the details and eligibility. You need the Adobe reader to view it. http://www.irs.gov/pub/irs-pdf/p970.pdf The answer is probably yes. IRS publication 970, chapter 9 will give you the details and eligibility. You need the Adobe reader to view it.

http://www.irs.gov/pub/irs-pdf/p970.pdf

]]> By: wisegirl74 http://www.iraroth.net/2010/03/is-it-possible-to-withdraw-the-money-from-traditional-ira-account-for-college/comment-page-1/#comment-896 wisegirl74 Thu, 25 Mar 2010 23:08:23 +0000 http://www.iraroth.net/2010/03/ira-accounts-can-you-withdraw-from-a-traditional-ira-for-college/#comment-896 It is always good to talk to the bank where you hold your IRA, but yes you can withraw some money without penalty from it for Education purposes or to purchase your first home. For a traditional IRA you will be taxed on those dollars at the rate you earn today, so make sure you are making the right move when doing so. It is always good to talk to the bank where you hold your IRA, but yes you can withraw some money without penalty from it for Education purposes or to purchase your first home. For a traditional IRA you will be taxed on those dollars at the rate you earn today, so make sure you are making the right move when doing so.

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