Is there an education IRA early withdrawal penalty?

You may be concerned about incurring a penalty on an early education IRA withdrawal. You fund this type of account with after-tax dollars. This is similar to with a Roth IRA. Since you are funding it with after-tax dollars, you can withdraw the money that you put in at any point. The only time that you would potentially incur a penalty for taking out your money is if you take out some of the money that was earned from the investments on a tax-free basis. You can always withdraw money for education expenses without penalty.

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