I want to use distributions from my Individual Retirement Account (IRA) to pay student loans. I am not yet age 59 Â½. Will I owe a tax penalty for taking an early withdrawal from my IRA even if Iâ€™m using the distribution to pay student loans?
Yes, an early-distribution penalty will apply when using an IRA to pay student loans . You must pay the 10% additional tax on the portion of your IRAs you withdrew to pay student loans. An exception to the penalty applies to IRA distributions used to pay for current educational expenses.
Receive an IRS 693 letter? Learn more about letter 693, why you received it, and how to handle it with help from the tax experts at H&R Block.
The IRS requests that you have more taxes withheld from your paycheck. Learn more about IRS letter 2802C from the tax experts at H&R Block.
For freelancers and small business owners, quarterly estimated taxes are a likely requirement. Make sure you don't miss a payment with H&R Block.
Do you need to apply for a state filing extension? Learn more from the tax experts at H&R Block.