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Will you get penalized for withdrawing from a child's educational IRA?

I am in financial situation and am needing to withdraw money from my childs IRA.

asked by vigneshwari (6)

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Tags:  education  investing

answers

Anytime you withdraw money from an IRA for anything other than the intended purpose you will be hit with a penalty. Most likely this will be in the form of a heavy tax which you will have to file on your income tax.

6 votes

Yes. Typically you will not only have to pay higher taxes on this but will not be eligible for the full amount.

5 votes

YES, you will get penalized. If you're in a financial situation PLEASE DO NOT PUNISH YOUR CHILD and take the money he is supposed to use for his education. My parents took my money from me as a child and it stuck with me forever.

5 votes

You will have to pay income taxes on the money as well as a 10% penalty. If it is a matter of hardship, contact an attorney to request a waiver.

4 votes

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