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Taxpayers may make withdrawals from an individual retirement
account (IRA) to pay the qualified higher education expenses for the
taxpayer, the taxpayer's spouse, or the child or grandchild of the
taxpayer or taxpayer's spouse at an eligible educational
institution.
The taxpayer will owe federal income tax on the amount
withdrawn, but will not be subject to the 10 percent early
withdrawal tax that applies when amounts are withdrawn from an
individual retirement account before the account holder reaches age
59½.
Click here for details from the Internal
Revenue Service website about using Traditional IRAs for education
expenses.
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