UnThreaded | Threaded | Whole Thread (11) | Ignore Thread Prev | Next
Author: TMFPixy Big gold star, 5000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 76090  
Subject: Re: college ira? Date: 2/28/1999 12:02 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
Greetings, Cashew, and welcome. You asked:

<<Can someone please let me know where I might inquire about college IRAs?>>

And added in response to a reply by Peppermintpatty:

<< Can a Roth be used for Education without penalties. Where can I find more info about Roth IRAs?>>

In addition to IRS Publication 590 (Individual Retirement Arrangements) available at www.irs.gov, you will find a general description of Roth and Education IRAs in the IRA discussion of my Foolish Retirement Planner available at http://www.fool.com/retirement . You may indeed use the Roth to pay for the expenses of a higher education without incurring a penalty for early withdrawal. Remember that your Roth contributions may be taken at any time free of tax and without penalty. When you start withdrawing earnings, though, then you must be older than age 59 1/2 and the account must be open for at least five tax-years to escape taxes and a penalty unless you meet one of the authorized exceptions. Withdrawal for education expenses is one of those exceptions authorized. Therefore, if you use all your Roth contributions and must use earnings, as long as the withdrawal is for education expenses you will escape the 10% early withdrawal penalty. You will, though, have to pay ordinary income taxes on the earnings withdrawn.

Regards…..Pixy
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (11) | Ignore Thread Prev | Next

Announcements

The Retire Early Home Page
Discussion on accelerating retirement day.
Pencils of Promise - Back to School Drive
"Pencils of Promise works with communities across the globe to build schools and create programs that provide education opportunities for children."
Post of the Day:
Apple

Wal-Mart Nixes Apple Pay
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement