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?

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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.

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