Bill Mayhan feels that he is not meeting his full potential and wants to go back to school to improve his chances of advancement within his company. He needs some additional funds to pay for his college tuition and wants to withdraw money from a retirement account. He has a traditional IRA and his spouse, Ann, has a 401(a) account. He wants to know if he can withdraw funds from both accounts without having to pay the 10% penalty for early withdrawal of funds.
Please write up your findings in the following memo form.
Date:
To: Client File
From: Tax Researcher
Facts: Write up the facts in the case.
Issues: Write up the issues in the case.
Conclusion and Reasoning: Cite authority (such as IRC sections, Treasury Regulations, court cases) and discuss your reasoning and conclusions.