| |
|
|
|
| Money For College From Your IRA |
| |
|
| Education is one of the smartest investments
you can make. Higher education is often necessary in order to get
higher paying jobs. However, the challenge for many is finding the
money to pay for college. |
| |
| Tax Penalty Free Early IRA
Distribution |
You
may be exempt from paying the IRS 10 percent early withdrawal penalty
when you draw money from your traditional IRA or Rollover IRA to
pay for qualified educational expenses for you, or someone in your
immediate family such as, your spouse, your children, or grandchildren.
Qualified educational expenses include tuition fees involved with
post secondary education, including expenses such as college fees,
supplies, equipment, lab fees, books, and room and board. A post
secondary education school includes a college, university, vocational
school, graduate school, or a professional degree course.
The amount that you use that you use for education from your IRA exempt from the
10 percent early withdrawal penalty tax is reduced by any amount received in
any tax free assistance, grants, or scholarships.
For example, if you use $30,000 from your IRA for qualified education
expenses, but also received $1,000 grant and a $2,000 scholarship,
you are liable for a 10 percent early withdrawal tax on $3,000 of
your IRA distribution.
The distribution amount from your IRA has to be claimed as income
on your federal income tax. While this could increase your income
tax, you should see a big saving on the amount that you may
otherwise have
to pay in interest if you took out a personal loan
to pay for college expenses. |
| |
| How to get a Rollover IRA |
Once you are no longer working for an employer where you had a
retirement plan, you may qualify to rollover your 401(k), 403(b),
457 or other retirement account tax-free into a Rollover IRA. We
make the rollover process easy by providing you Free online the
paperwork needed to process your Rollover. Just fill out our IRA
Rollover online request form.
There is no obligation on your part. Read and review the information
before you invest or send money. Your money will be invested in
any of the Pioneer Investments mutual funds that you select. Pioneer
Investments has been managing mutual funds for over 75 years. Mutual
fund returns and share prices fluctuate, and shares when redeemed
may be worth more or less than original cost. Feel free to contact
us or Pioneer if you have any questions. |
| |
| Afford education payments
- Using Retirement Money for College Payment and Support Tuition Fee.
Pay for college |
|
|
|
|
|
|
