Can I “borrow” from my IRA?
If I take out money from my IRA and later return it, Do I have to pay taxes on it. I am well over 55.
Thank you Terry.
Terry Says: Well, yes and no! There is no provision for “borrowing” from an IRA as there is from a 40l(k) account. However, there is a 60-day window for moving money from one IRA to another, so theoretically you could “borrow” the money and REPAY WITHIN 60 DAYS into that IRA or a newly-established traditional IRA. But the IRS counts calendar days, and if you don’t repay on time it will be considered a withdrawal, subject to taxes — and at your age, a 10% early withdrawal penalty. So be very careful because this could be costly — not only in terms of taxes and penalties, but loss of future tax-deferred growth on the money!