Can I liquidate my Roth IRA to pay for my daughter's upcoming college tuition?

I recently liquidated my Roth IRA in anticipation of the tuition bill for my daughter who will start college this fall. I am 53 years old. I understand I can use up to $10K without penalty as an unqualified distribution. I also understand that I have 60 days to put the remainder into a new Roth IRA at a different institution as a rollover. If I follow these guidelines, can I distribute my Roth IRA to pay for her tuition?

College Tuition, IRAs
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June 2017
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Legally you can do almost anything you want to do.  I will rephrase your question to ask whether it is prudent, rather than whether it is legal.  It is not prudent to liquidate a Roth IRA, which takes a lifetime to build and only a few seconds to destroy.  You are permitted once a year to take money out of a Roth (or any retirement account) and then to replace it within 60 days, but you should save that situation for a true emergency such as your dying on the emergency-room table rather than a college tuition bill which you have known about in advance for about 18 years.  Those who don't plan end up with the false crises that they deserve.

If you don't replace your Roth funds within 60 days then you will face a 10% penalty for early withdrawal since you are not yet 59-1/2.  You can apply for a waiver from the IRS since you are using it for tuition for your daughter and they may approve it.  However, in that case you won't be able to replace your Roth funds except to the extent of your usual annual maximum of 6500 apiece for yourself and your spouse--which probably you aren't doing anyhow.

Whether you have a Roth with one institution or another is irrelevant.  The rules are the same either way.

If you are fortunate (or unfortunate) enough to be reincarnated, I would suggest starting to plan ahead for your children's college tuition around the time of their birth, rather than on the day before the tution is due.

June 2017
June 2017
June 2017
June 2017