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|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