Withdrawing early from an IRA to repay a former employer who originally paid for my MBA program
My former employer covered the full cost of my MBA program, approx $25K, over the course of 2.5 years. Just before graduation, I received a job offer with a new company that was too good to turn down, so left my original company. Per the agreement I signed, I now owe my former employer the total sum of $25K.
MY QUESTION - If I withdraw money early from an IRA and use it to pay back my former employer the amount they spent on my MBA, can I get exempted from paying the 10% early withdrawal fee?
The institution I received my MBA program is fully accredited and satisfies all requirements of the exemption. I have records of the cost of the program and of the payments to my former employer.
Thanks for the help!