Education exception to pension penalty

[TaxmannEA]

When a taxpayer uses the education expense exception for the early distribution penalty for an IRA, do the expenses have to be for a dependent, or can expenses used for a non-dependent child count also? I have a client who paid tuition and expenses for her son who was claimed that year by his father. I read the regs as saying expenses paid for a child are allowable. I don't see a requirement that the child be a dependent. Just wanting to double check.

[Max W]

It has to be for qualified expenses, which means - dependent.

[SaraEA]

The student does not have to be a dependent. This from Pub 970:

"Who Is Eligible

You can take a distribution from your IRA before you reach age 59½ and not have to pay the 10% additional tax if, for the year of the distribution, you pay qualified education expenses for:

• yourself,

• your spouse, or

• your or your spouse's child, foster child, adopted child, or descendant of any of them."

That's it. No other requirements. This is a Pub, of course, and not authority, but it confirms what you read in the Regs.