Ira Withdrawal Higher Education Expenses

May 22nd, 2009

Question: Would MCSE/MCSA bootcamps qualify for a tax exemption for higher education?

on form 5329 a form for early 401k withdrawal additional tax on qualified plans there is an exemption (08 IRA distributions made for higher education expenses.) for the additional tax on line 2 for higher education expenses. would a MCSE / MCSA boot camp qualify for this exemption?
Thank you for your answer

I have contacted the institution and received a reply

The classes taken at ******** are not tax deductible. We are not an accredited college/university. And we do not award credits for classes taken here. We do not meet the government criteria for tax exemption.

Please let me know if you have any other questions.

Thank you for the prompt answer

Answer: Read IRS pub 970.

Eligible educational institution. An eligible educational institution is any college, university, vocational school, or other postsecondary educational institution eligible to participate in a student aid program administered by the U.S. Department of Education. It includes virtually all accredited public, nonprofit, and proprietary (privately owned profit-making) postsecondary institutions. The educational institution should be able to tell you if it is an eligible educational institution.

Certain educational institutions located outside the United States also participate in the U.S. Department of Education’s Federal Student Aid (FSA) programs.

The “boot camp” can tell you if they are eligible. Unfortuntately, they don’t have to be. A software company that offers such classes probably wouldn’t be….