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Author: TMFTaxes Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 120800  
Subject: Re: Child's education using 401K Date: 3/20/1998 12:10 AM
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[[I am interested in finding out if I will be able to withdraw from my 401K account before I am 59 to
pay for a child's college education without paying a penalty.

IRS publication 590 states that such a withdraw is valid for an IRA account. The publication does
not state that 401K accounts can be treated like IRA accounts.

If you could steer me in the right direction, I would be appreciative.]]

IRA accounts and 401k accounts are completely different animals. The new law that you refer to deals with IRA distributions only. If you take a distribution from your 401k account, even if you used it to pay qualified higher education expenses, that distribution would be subject to penalty.

TMF Taxes
Roy
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