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I want to roll over a lump sum of retirement funds into some type of savings account, but want to designate a certain amount of it to pay off school loans.

Can I do it without being taxed and/or penalized on the amount going to school loans? If so, is an IRA or Roth IRA my best options?

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Can I do it without being taxed and/or penalized on the amount going to school loans?

No. Any withdrawal from your IRA account which is not re-deposited into another IRA account within 60 days is considered a distribution and is taxable. Unless certain exceptions apply (and repaying school loans isn't one of them), you will also be charged an additional 10% penalty if you're under 59.5 years of age.

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