Potential Withdrawal for Student Loans
I had a 401(k) from a previous employer. Upon separation, I rolled it over to mostly a Roth IRA, but the account also has a money market account within it. I was looking to see if/what the penalty for early withdrawal from the money market portion would be if I were to withdraw and apply to my student loan balance. I am not 59.5 years old, and know that IRA withdrawal would incur an IRS penalty.
Quick Answer:
Withdrawals from a money market account held within a Roth IRA are treated as distributions from the Roth IRA itself. The type of penalty, if any, depends on the source of the funds and
Note: This answer is provided for convenience only. It is important that you speak to a CPA about your individual tax situation.
