2007-01-24 14:02:37 · 2 answers · asked by confused 1 in Business & Finance ➔ Personal Finance
i think the current law only allows loans against 401k's
i hate to be the bearer of bad news, but i believe that if you rolled the money into a traditional ira, i am afraid that you may be out of luck.
2007-01-24 14:10:43 · answer #1 · answered by Jeff G 2 · 0⤊ 0⤋
Everyone is correct that loans are not available from IRA's. The amount rolled into the IRA from 401(k) rollover is now in the IRA and is subject to IRA rules.
The IRA will permit a withdrawal and if returned within 60 days of receipt of the distribution check ... it will not be subject to IRS taxes and penalties. That's the only way to tap the 401(k) rollover funds for a very short term without penalties.
Otherwise you are SOL ... one individual below suggested rolling the 401(k) monies into your new employers 401(k) plan and then take a loan. This will work assuming you are working now and that employer has a 401(k) plan that accepts rollover dollars and then allows loans from their 401(k) plan.
Good Luck!
2007-01-25 13:52:50 · answer #2 · answered by Kirk S 2 · 0⤊ 1⤋
NO. The loan must be paid back from money no longer already in a retirement account. What you propose might enable you to WITHDRAW money with out the penalty. Woof: An IRA could be rolled right into a 401(ok) that accepts rollovers, even though it could't be used to pay off a loan.
2016-12-12 19:41:33 · answer #3 · answered by ? 4 · 0⤊ 0⤋
can't take a loan from an IRA. Only thing you can do is roll it into your current 401k and take a loan from there.
2007-01-25 03:22:06 · answer #4 · answered by digdowndeepnseattle 6 · 0⤊ 0⤋