TO wrote:

- quote -

You can make early withdrawals and avoid penalties to the extent that
the proceeds are used for "qualified higher education expenses" for you,
your spouse, or your children (or grandchildren).

You still pay federal & state income taxes on that amount, but you avoid
the 10% penalty that generally applies to early withdrawals. And of
course you're draining retirement assets, which may or may not be the
best source of funds.

For more info on the requirements see IRS Publication 590, which you can
get at any IRS office or online at www.irs.gov.

-Tad

to... believe y'all talkin' 'bout a seperate "education ira" set up fer
a child and or a 529 plan of which i'd prefer, if fer anythin' that with
each state offerring a 529 plan of their own, competing with the other
states fer y'all's money, thus a better plan fer y'all's individual
needs is more likely to be found... per withdrawing from y'all's own ira
fer a child, should think one would have to pay the penalty, though
please check the internal revenue code!... and perhaps a "professional"
here who will answer, "tad" are ya busy?...

I always thought you could not take early withdrawls from your IRA for your
childs college without penalty. I thought you could only use it for your own
higher education expenses. I recently heard you can use your IRA for your
childrens college. Which is correct?