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.
If you sold stock, bonds or other securities through a broker or had a barter exchange transaction, you will likely receive a Form 1099-B. Learn more from H&R Block.
Need help with an IRS correspondence examination (commonly called a mail audit)? Read the IRS definition and get more insight from experts at H&R Block.
Many taxpayers are stumped by Form 1099-K. Find 1099 k instructions and helpful information in this easy-to-read article from H&R Block.
Learn about IRS Notice CP297C, your appeal rights, and how to handle an IRS tax bill. Get tax help from the tax experts at H&R Block.