douhavethepipa?


I want to put the money back into the IRA that I borrowed from it…..I trade the stock market with that money and don’t want to deplete the account. I don’t have to pay the penalty because I’m 60….I just need to borrow from the account temporarily.

4 Responses to “How long can you borrow money from IRA without paying tax on it? I’m 60?”

1. goldenboyblue on June 7th, 2009 9:54 pm

   I believe 60 days

2. Judy on June 10th, 2009 12:46 pm

   You can borrow from your 401K – I don’t think you can borrow from your IRA.

   I’m not absolutely sure of that, so call the IRS and ask them.

3. WealthBuilder on June 12th, 2009 5:59 am

   You can’t “borrow” money from an IRA, per se. Only 401k plans have that option.

   If you take a “withdrawal” and plan on rolling it over to another account, you can use the money for 60 days without it becoming taxable.

   If you are 60, withdrawals are taxed at ordinary income tax rates without penalty.

4. ninasgramma on June 14th, 2009 12:10 am

   Borrowing money from an IRA or using it as security for a loan are “prohibited transactions”. If you engage in such a transaction, the entire IRA account ceases to be an IRA as of the first of the year. The entire account will be treated as distributed to you.

   However, you can take money out of an IRA as long as you reinvest it in the same or another IRA within 60 days.

   You can move the IRA money into a self-directed IRA with a brokerage firm and trade stocks inside the IRA.

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