Catherine Posted March 4, 2010 Report Share Posted March 4, 2010 Some folks took money from a 401k to make up a shortfall in funding kid's college expense. 1099-R says code 1, early no exception. Form 5329 has exemption for money taken out of an IRA for school -- does this apply also to 401k? Can't find the info -- maybe because my brain has turned to oatmeal after a very convoluted day. Thanks! Quote Link to comment Share on other sites More sharing options...
Lion EA Posted March 4, 2010 Report Share Posted March 4, 2010 No. Can they convert the withdrawal to a loan? Quote Link to comment Share on other sites More sharing options...
Catherine Posted March 4, 2010 Author Report Share Posted March 4, 2010 No. Can they convert the withdrawal to a loan? Don't think so -- closed out the account. Sigh. It's what I feared. They also closed a small IRA (~$800), so I'll use that amount. Shoulda let the kid take a loan, and then paid the loan off like the nice parents they are. But did they ask me first? Yeah, right. Thanks for confirming. Quote Link to comment Share on other sites More sharing options...
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