Can I withdraw my retirement funds to pay for my childrens college costs without incurring the 10% early distribution penalty if I am not yet 59 1/2?
Only the IRA rules allow you to do this. The 10% penalty will apply to distribution from other qualified plans (i.e. 401(k)). In any event, the amount that is withdrawn is subject to income tax. Go to TOP QUESTION: Does the $10,500 limit on 401(k) contributions for 2000 apply per employer or is it the total allowed per employee? ANSWER: The 401(k) maximum contribution limits apply per individual. If you have more than one employer during the year, you must be sure to not go over this limit to avoid excess deferred penalties. There is no such penalty if you correct the situation by April 15.
Related Questions
- When does it make sense to withdraw my retirement funds early to a) pay down credit card and other debt; b) start a new business; c) use the funds for any other non-retirement reason?
- Can I withdraw my retirement funds to pay for my childrens college costs without incurring the 10% early distribution penalty if I am not yet 59 1/2?
- Do early college students pay tuition?
