Submitted By: someone
Answered: June 20, 2021 11:49 pm

Can I give $10,000 from my IRA to my granddaughter to help her with college costs?

Nothing bars you from taking a distribution from your IRA and then giving the money to your granddaughter. However, if you’re withdrawing the funds from a traditional IRA (and you never made nondeductible contributions to it), you’re going to be fully taxed on the distribution. However, even if you’re under age 59½, you aren’t subject to a 10% early distribution penalty as long as your granddaughter uses the funds for qualified higher education expenses.

Tax Glossary

Acquisition debt

Debt used to buy, build, or construct a principal residence or second home and that generally qualifies for a full interest expense deduction.

More terms