Catherine Posted March 4, 2010 Report Posted March 4, 2010 Some folks took money from a 401k to make up a shortfall in funding kid's college expense. 1099-R says code 1, early no exception. Form 5329 has exemption for money taken out of an IRA for school -- does this apply also to 401k? Can't find the info -- maybe because my brain has turned to oatmeal after a very convoluted day. Thanks! Quote
Lion EA Posted March 4, 2010 Report Posted March 4, 2010 No. Can they convert the withdrawal to a loan? Quote
Catherine Posted March 4, 2010 Author Report Posted March 4, 2010 No. Can they convert the withdrawal to a loan? Don't think so -- closed out the account. Sigh. It's what I feared. They also closed a small IRA (~$800), so I'll use that amount. Shoulda let the kid take a loan, and then paid the loan off like the nice parents they are. But did they ask me first? Yeah, right. Thanks for confirming. Quote
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