can roth ira withdrawals be used for child tuition
Hardship withdrawals from 401(k)s can be used to pay for tuition and related educational expenses. However, hardship distributions from traditional retirement accounts taken by people under age 59Â½ are subject to a 10 percent early withdrawal penalty in addition to income tax on the amount withdrawn. worker in the 25 percent tax bracket who withdrawals $10,000 from an IRA for college expenses will owe $2,500 in federal income tax on the distribution. However, if the money is withdrawn from a Roth IRA before age 59Â½, income tax will be due only on the portion of the withdrawal that comes from investment earnings.