So if I got you guys right I can roll over my 401k into an IRA tax free and then draw out of the IRA for schooling as necessary without being taxed?
Tapping 401k
Discussion in 'Questions From New Drivers' started by JW430, Jul 27, 2009.
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Ok I'll check it out, I definitely want to get off on the right foot financially =)
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From what I understand on Pub. 970 is that you can deduct work-related education as long as it does not qualify you for a new profession/trade. I would imagine that CDL training does not count since it is a requirement for this line of work.
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Just click on this link, it will take you directly to the part that deals with your questions.
http://www.irs.gov/publications/p970/ch09.html -
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OK now I got it, hopefully I understand it correctly, lets say school costs $4000, I draw out $4500, $700 is taxable income, I owe 10% on the $500 I went over my school cost. Now would they charge income tax on that whole $700, the $200 I didn't pay 10% on, or $0 because the $500 I went over was already taxed?
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I will make more next year if I get into trucking at the end of this year
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JW430 Thanks this.
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