Ask The Expert: Withdrawals

Asked by Terri 7/3/12

Can funds in a ROTH IRA be used to pay for college tuition without any penalties for early withdrawl?

Matthew Malone A:
Answered by Matthew Malone 7/9/12
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Yes, as long as your distribution is less than or equal to your “qualified” education expenses (ie, expenses in excess of things like scholarships, employer-sponsored education reimbursements, etc). According to the IRS, eligible expenses “include tuition, fees, books, supplies, and equipment required for enrollment or attendance at an eligible educational institution. They also include expenses for special needs services incurred by or for special needs students in connection with their enrollment or attendance.”


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