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Intern
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Penalty for early IRA withdrawal for overseas MBA [#permalink]
 04 Feb 2011, 12:44
Hello all,
I believe I am in the right forum in which most people are looking to pursue a MBA overseas. For American applicants, I just wonder if any of you are planning to withdraw partially or entirely from your IRA account. According to the IRS, there will not be early withdrawal penalty as long as the school is an "IRS-approved institution". No doubt most American MBA are in this approved category. Yet I am unable to find a list to explain whether foreign MBAs are considered. What do you think?
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Re: Penalty for early IRA withdrawal for overseas MBA [#permalink]
07 Feb 2011, 17:24
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If the school qualifies for Stafford loans, then it should be IRS-approved. They use the same criteria for deducting a portion of the tuition costs on tax returns.
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Manager
Joined: 03 Apr 2011
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Location: United States
Concentration: Leadership, Strategy
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Re: Penalty for early IRA withdrawal for overseas MBA [#permalink]
27 Apr 2011, 09:46
Keep in mind that if it is a ROTH IRA, you can ALWAYS take the principle out without penalty (since it was taxed before it went in)
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Re: Penalty for early IRA withdrawal for overseas MBA [#permalink]
09 May 2011, 02:41
I contemplated about this option from my IRA/401K. I'm siding with not doing so because once you've taken it out of account, you won't have the option of contributing the same amount back into it. You might want to consider getting a loan and pay the interest. Years from now, your retirement account will be worth more than what you borrow.
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Re: Penalty for early IRA withdrawal for overseas MBA
[#permalink]
09 May 2011, 02:41
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