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.
How long penalty abatement takes depends on the type of penalty relief you’re requesting. Learn more from the tax experts at H&R Block.
Learn more about letter 1830 and how to handle an adjustment to your partnership's return with help from the tax experts at H&R Block.
Federal and state tax rates are constantly in a state of change. In case you missed important updates within your state, review the upcoming changes for 2018 and beyond.
Learn more about IRS Letter 3323C, why you received the letter, and what it means for you with help from the tax experts at H&R Block.