Last visit was: 21 May 2026, 05:38 It is currently 21 May 2026, 05:38
Home
Messages
Tests
Schools
Events
Close
GMAT Club Daily Prep
Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track
Your Progress

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History
Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.
Go to My Error Log Learn more
Close
Request Expert Reply
Confirm Cancel
avatar
ehpaul
avatar
Joined: 19 Sep 2010
Last visit: 21 Apr 2011
Posts: 3
Posts: 3
Kudos: 0
Penalty for early IRA withdrawal for overseas MBA 04 Feb 2011, 12:44
Kudos
Add Kudos
Bookmarks
Bookmark this Post
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?
avatar
ksf42001
avatar
Joined: 03 May 2010
Last visit: 14 Oct 2020
Posts: 15
Own Kudos:
10
 [1]
Posts: 15
Kudos: 10
 [1]
Penalty for early IRA withdrawal for overseas MBA 07 Feb 2011, 17:24
1
Kudos
Add Kudos
Bookmarks
Bookmark this Post
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.
User avatar
Zarthul
User avatar
Joined: 03 Apr 2011
Last visit: 27 Apr 2013
Posts: 100
Own Kudos:
26
Location: United States
Concentration: Leadership, Strategy
Schools: HBS '14 (WL) Wharton '14 (M$)
GMAT 1: 760 Q50 V42
GPA: 3.54
WE:Military Officer (Military & Defense)
Schools: HBS '14 (WL) Wharton '14 (M$)
GMAT 1: 760 Q50 V42
Posts: 100
Kudos: 26
Penalty for early IRA withdrawal for overseas MBA 27 Apr 2011, 09:46
Kudos
Add Kudos
Bookmarks
Bookmark this Post
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)
avatar
malibio
avatar
Joined: 09 May 2011
Last visit: 27 Jun 2011
Posts: 4
Posts: 4
Kudos: 0
Penalty for early IRA withdrawal for overseas MBA 09 May 2011, 02:41
Kudos
Add Kudos
Bookmarks
Bookmark this Post
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.