Ira Withdrawal College Expenses

October 17th, 2010

Question: Roth IRA and Taxes: What are fees fees for college expenses?

I have been researching the Roth IRA, and I have found that there are no penalties for withdrawing for college, but also that these withdrawals are subject to taxes. What are these taxes, and how much do they cost?

Answer: Only the principle amount is not subject to taxes. Any capital gain is. This is probably not your best bet for financing college. Contact your financial aid department and ask for federal financial aid or fafsa. You can also check out info at http://www.bills.com.

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