Ask Terry Questions Can I “borrow” from my IRA?

Can I “borrow” from my IRA?

By Terry Savage on August 15, 2015 | Financial Planning / Retirement

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!



a personal
finance question