I would like to use my 403b for a college fund - is that possible?

Answer by  Gabriel (2146)

It is possible, under the IRS rules, to use a hardship withdrawal from your 403(b), but you will incur significant penalties on any amount you take out. How significant? Up to 25% of what you take out can be lost to taxes and fees. You should check with your plan administer to see if a loan might be better.

Answer by  tamarawilhite (17883)

A 403B plan is a retirement plan. Any withdrawals for that purpose incur income taxes and a 10% penalty. A better choice is to pull from a Roth IRA, for which you have no penalties for taking out the contributions.