Higher Education Expenses adn the 10% Penalty

L1: Higher Education Expenses adn the 10% PenaltyA recent Tax Court summary opinion has concluded that amounts paid for a computer, housewares, appliances, furniture, bedding, and books in connection with the taxpayers’ daughter’s enrollment at a university did not qualify for the education expense exception to the IRA early withdrawal penalty because they weren’t shown to be required for her education. The amounts paid for books also failed to qualify because they were not substantiated. Gorski, TC Summary Opinion 2005-112
Thanks Al.
http://www.ustaxcourt.gov/InOpHistoric/gorski.sum.WPD.pdf2005-08-11 08:33, By: Gfw, IP: [172.16.1.71]

L2: Higher Education Expenses adn the 10% PenaltyIt is my understanding that you cannot use the various Exceptions to the 10% penalty, other than SEPP 72T, to withdraw more than the SEPP annual limit. Therefore, it is important when setting up a SEPP 72T to transfer no more than the amount needed to satisfy the maximum annual withdrawal that you need into the SEPP IRA account. Leave the balance in the Traditional IRA account to be used for other purposes that might qualify for the other exceptions to the 10% penalty.2005-08-11 09:28, By: dlztaxes, IP: [4.175.9.61]