Roth IRA to Fund Education?
Are Roth IRA withdrawals to fund a child's undergraduate education considered a qualified expense, thus avoiding the 10 percent tax penalty?
Yes. Tuition, fees and room and board expenses all qualify under the provision in the tax law that allows parents to withdraw penalty-free from an individual retirement account. Here's a link to the Education Department's explanation of the rules regarding IRA withdrawals used for paying higher education costs.Answer: