401k to IRA education withdrawal timing

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L1: 401k to IRA education withdrawal timingI understand that I can only make penalty free early distributions for higher education purposes from an IRA and not a 401K.Are there any $ or timing limitations to directly transfering needed amounts from a 401K to an IRA, and then taking distributions out of the IRA,toqualify the distribution exempt from the 10% penalty.
Thanks,
Bob2004-12-10 21:17, By: cartows, IP: [141.152.222.198]

L2: 401k to IRA education withdrawal timingNo timinglimits that I”m aware of,but I suggest that you goto http://www.irs.govand look through Publication 590 for limits and definitions of education expenses.2004-12-11 09:16, By: Gfw, IP: [64.108.196.124]

L2: 401k to IRA education withdrawal timingHello cartows:
In addition to Gordon’s comments there is one additional issue to aware of. A ruling was issued (or maybe it was actually a TC case) which for the life of me I can not find; that requires “matching” of the year in which the educational expense is incurred with the year in which the educational expense withdrawal is made. E.g. taxpayer’s son paid/incurred the educational expense in 2003 and taxpayer makes IRA withdrawal in 2004 to cover/reimbuse son’s expenses — exemption from the 10% surtax was DISALLOWED.
TheBadger
wjstecker@wispertel.net
2004-12-11 09:25, By: TheBadger, IP: [66.250.23.21]

L2: 401k to IRA education withdrawal timingI also remember (and also can’t find) the ruling that ‘the Badger’ remembers – http://www.irs.gov/publications/p970/ch09.html- contains some examples of how to calculate the amounte not subject to the 10%.
2004-12-11 09:51, By: Gfw, IP: [64.108.196.124]