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.
Seriously delinquent tax debt can cause your passport to be restricted. Find out if you could be impacted and learn how to fix the problem.
What is the deadline for employers to issue W-2 forms? Learn more from the tax experts at H&R Block.
For a limited time, qualifying taxpayers can pay nothing to file a 1040ez with a tax pro at H&R Block. Find out if you qualify and how you can pay nothing!
Learn more about notice CP162, why you received the notice, and your options to address an IRS penalty with help from the tax experts at H&R Block.