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olivesforpants:

<<<<IIRC, repayment of student loans is not "education expenses" for purposes of allowed use of IRA funds.>>>>

"Ahh, I see. Perhaps I was getting ahead of myself. I assumed that student loan repayment qualified as education expenses. I haven't pored over the IRS pubs exhaustively but so far though I haven't found an explicit definition of education expenses."

I am certain one exists.

"Thanks for pointing this out Jafo. Did you get your information online?"

Probably. Rad and nellie (LakersFan) are the resident financial aid experts. The real tax gurus frequent the Tax board and some of them frequent some other boards.

If you really want to know, I would first review the FAQ on the Tax Board, then check out www.Fairmark.com (one of the best tax sites on the Web, for the issues it covers), and if still not identified, ask on the Tax board.

A quick google located this:

http://www.irs.gov/publications/p970/

Subpart 9 WRT to IRAs defines Qualified education expenses as follows:

"For purposes of the 10% additional tax, these expenses are tuition, fees, books, supplies, and equipment required for enrollment or attendance at an eligible educational institution. They also include expenses for special needs services incurred by or for special needs students in connection with their enrollment or attendance."

It does not say anything about repaying loans!

Regards, JAFO
(not a tax guru)




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