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Author: PFrederickson Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75523  
Subject: Roth IRA Distribution Date: 10/4/2001 9:32 AM
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My wife and I invest in many different vehicles, but don't have and education fund for our children. I read where there were some exceptions to withdrawals for a Roth IRA. Can you take a withdrawal from a ROTH IRA to pay for your childs higher education without penalty?
Thanks for any light you may shed on this situation.

Phillip
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Author: TMFPixy Big gold star, 5000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 32102 of 75523
Subject: Re: Roth IRA Distribution Date: 10/4/2001 10:59 AM
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Greetings, Phillip, and welcome. You asked:

My wife and I invest in many different vehicles, but don't have and education fund for our children. I read where there were some exceptions to withdrawals for a Roth IRA. Can you take a withdrawal from a ROTH IRA to pay for your childs higher education without penalty?

For overall information on IRAs and the Roth in particular, see our IRA Area at http://www.fool.com/money/allaboutiras/allaboutiras.htm and IRS Publication 590 (Individual Retirement Arrangements) available for download at http://www.irs.ustreas.gov/forms_pubs/pubs.html.

You may take your original annual contributions from a Roth at any time free of taxes or penalty. When they are all gone, you will usually be into earnings. Those you may take for education costs free of penalty, but not of income tax unless the account has been open for at least five years AND you are older than age 59 1/2.

Regards..Pixy


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