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I currently have a 401-k with my company. I am going back to school and wanted to know the best way to use my 401-k money. Should I rollover to a rollover IRA? If I do, will withdrawl for higher education be without a penalty and tax on my profits? BTW also have a Roth, is withdrawl for higher education without a penalty and tax on my profits

The only thing that will come out tax-free is your Roth contributions. Withdrawals from IRAs for qualified education expenses are exempt from the premature distribution penalty--you just pay income tax.

There is no corresponding provision for 401(k) withdrawals, so you'll want to roll the money into an IRA and do the distributions from there.

Phil Marti
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