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    mc01635's Avatar
    mc01635 Posts: 2, Reputation: 1
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    #1

    Apr 6, 2018, 09:47 AM
    Distribution from IRA
    In 2016 I rolled my 401k into a traditional IRA. In 2017 I took an early distribution to pay for higher education. Do I include in taxable income the entire distribution or do I reduce the amount from the rollover on line 2 of F8606 and only include in income the difference?
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    AtlantaTaxExpert Posts: 21,836, Reputation: 846
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    #2

    Apr 6, 2018, 09:50 AM
    The ENTIRE distribution is included in your taxable income, but if you used ALL of it for higher education costs, then you can claim an exemption from the 10% Early Withdrawal Penalty.
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    mc01635 Posts: 2, Reputation: 1
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    #3

    Apr 6, 2018, 10:02 AM
    Thanks - Publication 590A stated that any nontaxable amounts that you roll over into an IRA become part of your basis - so I am confused.
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