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I have a 401(k) from a previous job that can be rolled over in a Traditional IRA. I read somewhere that Traditional IRAs can be used for "higher education" expenses. Since my grad. school expenses will be quite large (and retirement savings is not that high of a priority right now), I am thinking of rolling over my 401(k) into an IRA, continue to put tax-deferred savings into the IRA, and then withdraw the money during my second year of grad school when I will be in a lower tax bracket.

Has anyone used their 401(k) in a similar manner? Are there any complications/details that I should be aware of?

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