Article Date:
November 2017


Word Count:
1827

 

 

Beware When Children Use IRAs and/or Savings to Pay for College


Does the tax code penalize children who use, say, $7,000 from their savings for college?

 

Yes, more than likely!

 

Does the tax code penalize children who withdraw $7,000 in funds from a traditional IRA and use that money for college?

 

Yes, more than likely, but not as you would expect.

 

Does the tax code penalize children who withdraw $7,000 in funds from a Roth IRA and use that money for college?

 

No, not if the withdrawal is from contributions only.

 

Wow! There is a lot of ugliness here. What causes the ugliness and what can you do about it? ... Log in to view full article.

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