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URL:  http://boards.fool.com/i-have-a-40k-ira-set-up-to-pay-off-sons-student-30021076.aspx

Subject:  Re: IRA withdrawal for college costs Date:  5/5/2012  12:32 AM
Author:  aj485 Number:  305121 of 309666

I have a $40K IRA set up to pay off sons student loans. Loans currently at 7.3%. Should I take IRA out (without penalty for ed expenses) or hold IRA which made 11% last year.

Would you be asking this question if your IRA had lost 11% last year?

Investing funds that you intend to use to pay off debt in the short term is using margin, with a risk of loss.

If I withdraw, should I have them withhold taxes up front, or save $ between now and Apr '13 to pay additional taxes? Any suggestions appreciated

My advice would be that you need to consult a tax professional.

According to IRS Pub 590 and IRS Pub 970, withdrawals from an IRA to pay for education are only penalty-free if they are made in the yea