Can I use a 403(b) to pay for college? | Ep.86
Georgia Safe Retirement Planners · Georgia Safe Retirement Planners
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Show Notes
In this episode, we tackle a common question: Can I use a 403(b) to pay for college? While a 403(b) is primarily designed as a retirement savings account for educators, employees of tax-exempt organizations, and ministers, it may also offer limited options for funding education expenses. But there’s a catch—rules, taxes, and potential penalties.
We explore two main ways to access your 403(b) for college expenses:
- Loans from Your 403(b): Learn how you can borrow from your account balance, what limits apply, repayment requirements, and the impact on your future savings.
- Hardship Withdrawals: Understand when hardship withdrawals for education are allowed, the associated tax implications, and whether you can avoid early withdrawal penalties.
Additionally, we break down Georgia’s state tax rules, including how they apply to 403(b) withdrawals for education and how retirement income exclusions might come into play if you’re over 62.
Tune in to find out if using a 403(b) for college expenses is the right move for you—or if it’s better to keep these funds earmarked for retirement. Don't miss this practical guide to making informed financial decisions for education and beyond!