Borrowing from IRA (prohibited?)

[JAinNC]

Thanks

Taking money out of an IRA and putting it back within 60-days is not considered borrowing. It is considered a rollover.



The 20% withholding rule only applies to distributions from qualified plans. It does not apply to distributions from IRAs.

Thanks for the 1st answer. That was a big concern - putting it back into the same IRA = rollover..
What the financial advisors tells my client may not include the year-end reporting of 1099R.

I will give him the advice to tread carefully on the one rollover and that a second such transaction in the same 12 months is not allowed.

[JAinNC]

Thanks to you all

Great info from you all.


Jeannie

[Lion]

Deadline

And, make really, really sure he understands what his actual deadline is for him to deliver the funds in order for his broker to have time to process the funds into his IRA before the 60 days is up. His broker might be down the street, but the department that receives IRA deposits might be in Detroit with checks going via USPS or a weekly courier or.... 60 days is NOT two months, and brokers don't work on weekends and Labor Day and Rosh Hashanah and Yom Kippur and.... He's relying on other people to do what he expects.

[JAinNC]

Gotcha

Thanks, I'm calling him back right now.
And I will mail him a memo (in writing) of what I said.