can you borrow on an ira? are there penalties for doing this?
2007-10-16 03:01:47 · 4 answers · asked by dollyvg2002 2 in Business & Finance ➔ Personal Finance
10% for early withdrawal and taxable income to you for a traditional IRA. For a Roth IRA, pay the penalty. There are some details, like if you return it within 60 days, you're ok. Ask whoever holds your IRA what the consequences would be.
2007-10-16 03:05:27 · answer #1 · answered by hirebookkeeper 6 · 1⤊ 0⤋
You cannot borrow from an IRA. If you withdraw money from a traditional IRA before the age of 59 1/2 you incur a penalty and you have to pay tax on the income. After 59 1/2 there is no penalty. Your withdrawals are subject to income tax.
You can withdraw money from a Roth IRA without penalty or income taxes if the IRA has been in existence at least 5 years. withdrawals before the five year period are subject to penalties.
2007-10-16 10:12:27 · answer #2 · answered by Anonymous · 0⤊ 0⤋
There are no provisions for borrowing from an IRA. Also, you can not pledge your IRA as collateral for a loan.
If it is a Traditional IRA, you would be taxed and penalized on any withdrawl. If it is a Roth IRA, you can take your contributions out at any time tax and penalty free. If you take the earnings out, you would pay taxes and a penalty.
2007-10-16 10:06:23 · answer #3 · answered by Wayne Z 7 · 0⤊ 0⤋
you can make a withdrawl but your money you put in is pre-tax so your penalty would be that you pay taxes plus additional fees may apply. contact your IRA account rep and they can tell you the exact procedures and penalties.
2007-10-16 10:06:15 · answer #4 · answered by Bob F 2 · 0⤊ 0⤋