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I'm considering my options on how to pay for my final year of grad school.
One option I have considered is using my IRA to pay for fall tuition, instead of taking out a student loan.

What are the IRA/tax considerations that I need to consider for this?

Assuming this is a traditional IRA and you've never made after-tax contributions, the distribution will be fully taxable. However, the premature distribution penalty is waived, within limits. See Pub 590.

I have paid for summer classes using my savings, and the amount I have already paid exceeds the $4000 tuition and fees reduction

If you're in the 15% bracket or below the Lifetime Learning Credit might be a better deal. See Pub 970 for details.

Rule Your Retirement Home Fool
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