2006-09-21 09:30:29 · 4 answers · asked by Eric S 1 in Business & Finance ➔ Personal Finance
No. The person holding the IRA can withdraw money anytime he wants. Before age 59 1/2, he can withdraw but has to pay a penalty.
An IRA holder can designate a beneficiary, but any money in the fund is transferable only after the IRA holder's death.
If someone is trying to use IRA as collateral on a loan, he cannot.
2006-09-21 09:38:43 · answer #1 · answered by regerugged 7 · 0⤊ 0⤋
No, absolutely not. IRAs, while community property in states like WI and CA are individually owned and cannot be pledged for payment on current debt. This is because there may be penalties for cashing in prior to age 59 1/2.
2006-09-21 17:12:27 · answer #2 · answered by Anonymous · 0⤊ 0⤋
No, tax laws forbid using an IRA as collateral for a loan. If you really want to do this you would have to withdraw the money from the IRA.
2006-09-21 16:58:54 · answer #3 · answered by Adoptive Father 6 · 0⤊ 0⤋
Thats not going to be the banks first choice. I'm not sure if it is even legal. But I know the bank is not going to be interested in this arraingment.
2006-09-21 16:38:56 · answer #4 · answered by john d 3 · 0⤊ 0⤋