All Things Tax

All Things Tax

Like the title says, from the filing process and tax questions to tax policy and reform, you can search and share All Things Tax here. This is the place to find answers to all your general questions that don't fall under the other categories. And just a reminder: questions about software or online filing should be posted in DIY Products.

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Pioneer
Posts: 1
Registered: ‎12-06-2017
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Using IRA to pay tuition for a certification program

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I would like to use my IRA to pay tuition without paying the early withdraw penalty. I understand that I will still pay income taxes. The program I want to attend is a non-degree (certification) program. The school is a traditional university, and is an eligible educational institution, but this program is part of their continuing education line up. The school does not provide a 1098-T form for this program.  They said that I do not need one for a non-degree program. Will I be able to use my IRA to pay tuition for this program penalty free? What is the process to notify the IRS that the money went to tuition?

Tax Pro
Posts: 5,780
Registered: ‎02-23-2016

Re: Using IRA to pay tuition for a certification program

Hi slashy42,

 

 

Welcome to the H&R Block community.

 

Yes, you can use your IRA funds to cover the tuition, fees, and books.  These three items are qualifying expenses for any course leading to a degree or certificate.

 

You must take the exception to the penalty by completing Form 5329 with your tax return.

 

 

If you have any other questions I'll be glad to help.

 

Louis,

Senior Tax Advisor (Tampa, FL)