IRA Penalty Free Distributions Expanded
Thursday, July 14, 2016 at 11:14AM
Banking Spectrum in Pension, What's New

The Protecting Americans from Tax Hikes Act of 2015 (the PATH Act) was signed into law on Friday, December 18. Parts of the act include a provision that expands a taxpayer's ability to take a penalty-free distribution from an IRA nd Coverdell Education IRAs for higher education.

The list of eligible expenses that are not subject to the IRS 10% early distribution penalty has been expanded to include expenses for the purchase of computers and related equipment, software, and internet access expenses, if used primarily by a student during any of the years they are in school. 

See more in The Gold Book: Educational Expenses Rule and Coverdell Education Savings Accounts Distributions.

Article originally appeared on Banking Spectrum (https://www.bankingspectrum.com/).
See website for complete article licensing information.