A lot of readers want to know if they can borrow from their IRA. This is a common question. Most places you will find advice saying that you can’t borrow from individual retirement account. This is almost true, but it doesn’t consider the whole picture.
The IRS is very specific that you can’t use an IRA as collateral for a loan or borrow money from it. But they do allow you to roll the money over into another account once each year. When you do a roll over, you have 60 days from the time you take it out of one account until you put it into the next.
So basically, you can borrow money from your IRA, but only for 60 days once each year.
Just because you can borrow from an IRA, doesn’t mean it is necessarily a good idea. Most IRAs are invested in the stock market. If the market is down and you pull your money out, you stand a good chance of missing out on the gain as it goes back up. Trying to time this is nearly impossible.
For most people there are many other better options that borrowing from their IRA, but you can take a 60 day loan by using the rollover option.
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