IRA for non-tuition expenses?

[iowaguy]

If I have a tuition waver, what other expenses can I use IRA funding for without a withdrawl penalty? I have $25k in an emploer's retirement account that I need to roll over into something when I start grad school, but am not sure what option would leave me the most flexibility for future expenses. Has anyone else used IRA or other retirement funding towards non-tuition expenses?

Any other options for rolling a pre-tax IRA into some sort of educational account to avoid paying taxes?

Thanks,

Iowa Guy

[victor.s.andrei]

If I have a tuition waver, what other expenses can I use IRA funding for without a withdrawl penalty? I have $25k in an emploer's retirement account that I need to roll over into something when I start grad school, but am not sure what option would leave me the most flexibility for future expenses. Has anyone else used IRA or other retirement funding towards non-tuition expenses?

Google is your friend.

See http://www.irs.gov/publications/p970/ch09.html#en_US_2011_publink1000178586.

"For purposes of the 10% additional tax, these expenses are tuition, fees, books, supplies, and equipment required for enrollment or attendance at an eligible educational institution. They also include expenses for special needs services incurred by or for special needs students in connection with their enrollment or attendance. In addition, if the student is at least a half-time student, room and board are qualified education expenses."

So it looks like you will still pay tax, but no penalty, under certain circumstances.