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

Answer by  flamiss22 (5081)

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.

Answer by  angiem1981 (1059)

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

Answer by  Roland27 (16334)

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.

Answer by  tamarawilhite (17883)

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.