Thelma can get the 10% penalty on the early withdrawal from her IRA waived if the money is used to pay her son's college tuition.

Question

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Thelma can qualify for an exception to the 10% penalty if she withdraws money from her IRA to pay for qualified higher education expenses (QHEEs) for herself, her spouse, or a dependent. QHEEs include tuition, fees, books, supplies, and equipment required for enrollment or attendance at an eligible educational institution. However, Thelma must still pay income tax on the withdrawn amount, unless she is also eligible for the American Opportunity Tax Credit or Lifetime Learning Credit.

Thelma Can Get the 10% Penalty on the Early Withdrawal