how can I draw money from Ira?

Question

I'm planning to take out money from Ira for about 1-2 months and putting them back to avoid the tax casualty. I have about $30K in it.. but I'm not sure how to do it..and how will I be able to draw the whole amount? will it take a long time to cash out the money?

Answer 1

Just take a distribution. Contact the firm holding the IRA and tell them you want to take a distribution. Some firms will have a withholding tax as well. If you plan on putting it back in, ask not to have withholding because you will have to make up the difference when you put it back in. For example, you withdraw 30000 and there is a 20% withholding. You will receive 24000. But you will have to replace 30000 in order to avoid penalties. It takes 3-5 days (depending on firms) and then you have your money. You will generate a 1009R that is reported to the Government. You'll have 60 days to put it back into the IRA or another IRA (traditional)