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Author: bobbank1 One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 8178  
Subject: Roth for College? Date: 3/12/1999 7:32 AM
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Jackie,

The previous poster was talking about using ROTH IRA money for college. I was thinking about this possibility for myself. However, I did not see anywhere in the regulations that you are allowed to withdraw money for education from a ROTH IRA (of course, you can withdraw the principle, but not the interest). It does say that you can use traditional IRA money for education without incurring any penalty. Am I missing something buried even deeper in the regulations?

Bob B.
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Author: RecoveringFool Big gold star, 5000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 570 of 8178
Subject: Re: Roth for College? Date: 3/12/1999 8:29 AM
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<<However, I did not see anywhere in the regulations that you are allowed to withdraw money for education from a ROTH IRA (of course, you can withdraw the principle, but not the interest). It does say that you can use traditional IRA money for education without incurring any penalty. Am I missing something buried even deeper in the regulations? >>

Here's part of TMFTaxes Roth article and it says higher education expenses don't incur penalties :
http://www.fool.com/School/Taxes/1998/taxes981218.htm

Jacki

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Author: bobbank1 One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 571 of 8178
Subject: Re: Roth for College? Date: 3/12/1999 11:41 AM
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I saw TMFTaxes Roth article(s) and I can't find correlation between the article and Publication 590 with respect to higher education costs. Maybe I'm missing something (it wouldn't be the first time).

Bob B.

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Author: RecoveringFool Big gold star, 5000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 572 of 8178
Subject: Re: Roth for College? Date: 3/12/1999 12:18 PM
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Okay, I dug around in the IRS website and came up with this :
You can make withdrawals from your traditional or Roth IRA for qualified higher education expenses. A traditional IRA is an IRA that is not a Roth IRA, SIMPLE IRA, or education IRA. You will owe income tax on at least part of the amount withdrawn but you will not have to pay the 10% additional tax on early withdrawals. (Generally, if you make withdrawals from your traditional or Roth IRA before you reach age 59 1/2, you must pay a 10% additional tax on the early withdrawal.)
Here's the link :
http://www.irs.ustreas.gov/prod/forms_pubs/pubs/p97002.htm
It's from Publication 970 - Tax Benefits for Higher Education.

Does that work ? (now back to my taxes - ick !)

Jacki

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Author: bobbank1 One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 574 of 8178
Subject: Re: Roth for College? Date: 3/12/1999 1:11 PM
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So, I guess it depends where you look. Its like a game show - "DIGGING FOR DOLLARS". Thanks for the info and good luck on your taxes. I guess I'm gonna have to do mine soon. I keep all my tax info next to my hip-waders.

Thanks,
Bob B.

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Author: RecoveringFool Big gold star, 5000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 576 of 8178
Subject: Re: Roth for College? Date: 3/12/1999 3:09 PM
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<<So, I guess it depends where you look. Its like a game show - "DIGGING FOR DOLLARS". Thanks for the info and good luck on your taxes. I guess I'm gonna have to do mine soon. I keep all my tax info next to my hip-waders. >>

You're welcome - my big question of the moment is how much white-out is acceptable on the tax forms ? ;)

Jacki

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