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Contributor
I have 2 separate Roth IRAs that I have had for the better part of 10 years. Can I withdraw funds from these accounts to pay for my daughter's education without tax penalty?

1 REPLY

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usafcapt03

 

I am not a USAA Advisor, nor a USAA Employee. I am just a Member like you.

 

That said, the subject of Roth IRA's is too complex to give you a simple answer. This forum has Moderators whom are Financial Advisors whom may be better able to answer some your questions.

 

A key bit of advice that I can give you is that you should not withdraw any funds from your Roth IRA's without talking to a financial advisor first.

 

The best answer is YES you can withdraw fund from your Roth IRA with this key caveat:

 

  • You can take distributions from your IRAs for qualified higher education expenses only without having to pay the 10% additional tax. You may owe income tax on at least part of the amount distributed, but you may not have to pay the 10% additional tax. **(see Link #3 below)

Also the only real help I have for you are the following LINKS which should answer some of your questions.

 

1. USAA - Financial Advice Blog (maybe you could post your question there)

 

2. IRS - Roth IRAs**(External Link)

 

3. IRS - Publication 970 - Chapter 9 - Education Exception **(External Link)

 

4. Using Roth IRA To Pay For College **(External Link)

 

5. Using a Roth IRA for College Tuition **(External Link)

 

I hope I have helped you.