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    ncmomof2's Avatar
    ncmomof2 Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Sep 11, 2007, 10:30 AM
    401 for college
    I need to withdrawl $ from my 401K to pay for college expenses - my plan will automatically take fed and states taxes - will I have to pay a penalty or should I take the withdrawl - put it into an IRA and then withdrawl it?
    ScottGem's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
    Computer Expert and Renaissance Man
    		  
    #2

    Sep 11, 2007, 10:33 AM
    The law does permit a hardship withdrawl for paying tuition. If you plan allows hardship withdrawals, you would avoid the 10% penalty, but not the tax liability.

    P.S. please do not cross post.
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