2006-12-19 03:36:03 · 4 answers · asked by Teresa H 1 in Business & Finance ➔ Personal Finance
IRA accounts can not have loan provisions like a 401K plan. If you take a loan or pledge the IRA as collateral for a loan you would be taxed on the amount involved and possibly subject to the 10% early withdrawal penalty.
That said, if you only need to money for a short time it is possible to take money out of an IRA and then replace it into the same or a new IRA account within 60 days of when you receive the money. You can do this once every 12 months for each IRA account that you own.
If you don't replace the cash within the 60 days then you are subject to the tax and penalty.
2006-12-19 04:29:08 · answer #1 · answered by waggy_33 6 · 4⤊ 1⤋
Yes, you can borrow against the IRA, but there is a penalty, usually of 10%, but it can vary. You'll also have to pay a penalty to the IRS unless you opt for the bank, or who ever has your IRA, to withhold your penalty at the time of the withdrawal.
2006-12-19 03:45:41 · answer #2 · answered by Xander 4 · 0⤊ 2⤋
No.
IRAs do not have loan provisions.
The 60 day withdrawal works, but be careful (if you're late by 1 day you'll get hit with a 10% penalty and still owe taxes).
2006-12-19 04:49:52 · answer #3 · answered by derek 4 · 0⤊ 1⤋
The IRA??? Don't get involved with them or they'll end up bombing you!
2006-12-19 03:49:43 · answer #4 · answered by Oliver T 4 · 1⤊ 2⤋