popmom Posted July 2, 2017 Share Posted July 2, 2017 My husband has a small IRA that is not his primary retirement account. We have saved it for use for college expenses as a last resort. Well, after some huge unexpected expenses this year, we are considering making a withdrawal. I keep reading about what the money can be used for (in order to not pay the 10% penalty). Tuition, fees, room and board, books, and supplies. My girls each receive $8000 a year from a partial scholarship for tuition. I'm assuming we can only count the balance that we have to pay out of our pocket as an educational expense. Is that right? Also, as far as "room and board"... We paid cash for a condo for our girls to live in while they are in school. We did a cash out refinance on our home to give us the extra funds needed. So we don't pay rent. But our house payment went up $400 a month because of the refi. And we pay $200 a month in COA fees. Would either of those expenses be a "qualified educational expense"? What about groceries? Is that "board"? The way the rules are worded, it sounds like the student must be living and eating on campus. Thanks in advance. Quote Link to comment Share on other sites More sharing options...
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