If Clients Use IRA Funds for College Expenses, Be Sure They Can Document It for the Tax Court
May 6, 2019
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By Denise Appleby, APA, CISP, CRC, CRPS, CRSP
Distributions taken before an IRA owner reaches age 59½ are subject to a 10% early distribution penalty, unless an exception applies. For those who claim exceptions, it’s vital to maintain documented proof, as the IRS may deny the claim for exception in the absence of sufficient documentation. And that can be costly.