Can I use my Roth 401k to pay for MBA tuition without any penalties/tax implications?

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401k rules are employer specific. I’ve never heard of an education withdrawal provision, but some plans have loan provisions.

If you’re leaving your employer, you can/should roll those funds into an IRA. There you will have an education withdrawal option.

All that said, don’t do this. Don’t take money out of the market in a when the alternative is a cheap money loan. Just save, be frugal, and borrow the difference

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Agree with BCG1. If you do borrow, refinance to lower your rates. Be smart about paying off the loan. Make sure you factor in the opportunity cost. Not all debt is bad debt.

IRA you can withdrawl with no penalties to my understanding and there is no requirement to pay it back as it is post tax
Again, to my understanding.

I would highly suggest a loan over doing this though.

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Amendment to SC1 - you can withdraw your principal with no penalties

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Thanks! I knew there was a small catch

Ugh sorry I meant Roth IRA. Going to edit posts

Logistically, how do I go about doing this? Do I cash in my IRA and pay my tuition? when do I prove this was used for tuition?

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