What if I need my money for a non-education related expense?
If you withdraw money for reasons other than qualified higher education expenses, you must pay federal and state income tax on earnings, plus a 10% federal tax penalty on earnings.
that's what the FAQ for my fund says.
now, looking at the fund, it's actually lost money over the last 4 yrs. so if i withdraw money for non educational purposes, does that mean i pay zero in penalties and taxes?
If you withdraw money for reasons other than qualified higher education expenses, you must pay federal and state income tax on earnings, plus a 10% federal tax penalty on earnings.
that's what the FAQ for my fund says.
now, looking at the fund, it's actually lost money over the last 4 yrs. so if i withdraw money for non educational purposes, does that mean i pay zero in penalties and taxes?
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