Back to school

Non-investing personal finance issues including insurance, credit, real estate, taxes, employment and legal issues such as trusts and wills
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Topic Author
Tchoupsuey
Posts: 1
Joined: Wed Jul 10, 2019 7:41 pm

Back to school

Post by Tchoupsuey » Thu Jul 11, 2019 9:31 am

Hello, I’m going back to school and want to make sure I handle everything correctly. My plan is to rollover my 401k to an IRA then use some of that money to pay for school and avoid the 10% penalty,understanding the other tax implications. I also have the ability to pay tuition on my credit card and collect points. My question is this, would I need to have already pulled the money out of the IRA (newly created after the rollover) before my credit card is swiped for tuition? Or can I pull it out at any time in 2019?

I want to clarify this because when we bought our house, there wasn’t enough cash in the checking account when we wrote the earnest money check, so it ended up being considered a gift. We had plenty of cash available, it just wasn’t in that account. I’d like to avoid any timing/account errors like that this time around.

Thanks so much for your help.

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