Is a loan from using funds in an IRA a taxable event after age 59 1/2?

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Is a loan from using funds in an IRA a taxable event after age 59 1/2?

2007-06-22 07:47:59 · 2 answers · asked by Jerrry H 3 in Business & Finance ➔ Taxes ➔ United States

2 answers

You can take a loan against a 401K, but I don't think you can take one against an IRA.

Withdrawals are taxed as ordinary income in the year of the withdrawal. Being 59-1/2 saves you from the 10% penalty.

2007-06-22 07:59:05 · answer #1 · answered by Judy 7 · 2⤊ 0⤋

You cannot take a loan against an IRA. Therefore it would be considered a withdrawal and would be subject to tax.

2007-06-22 08:27:08 · answer #2 · answered by Bostonian In MO 7 · 3⤊ 0⤋