By Mike Miles
November 26th, 2012 | Uncategorized
Q. For about 10 years, I have been taking money out of my IRA using the Rule 72(t) with no issues. I am 58 years old and am planning to continue doing this well past when I turn 59½.
Our daughter has some very high college expenses. I understand you can take funds out of an IRA to help pay for eligible college expenses (tuition, fees and books) along with room and board if the student is enrolled at least 12 credit hours. Can I take money out of my IRA for educational purposes while still taking money out using Rule 72(t)? I do not run the risk of running out of money as, even with the 72(t) withdrawals, the account balance continues to increase.
A. This is really a question for your tax preparer, but to the best of my knowledge, any deviation from the 72(t) withdrawals before their term is up and you’ll trigger the early withdrawal penalty.
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