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12-06-2017 09:28 PM - edited 12-06-2017 09:55 PM
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?
Solved! Go to Solution.
12-06-2017 10:34 PM
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.
Senior Tax Advisor (Tampa, FL)