Loan from an IRA account
Loan repayments from an IRA account must be repaid with 60 days if you are under 59 1/2. Does the 60 day repayment time frame also apply if you are over 59 1/2?
Terry Says
Actually, you can’t take a “loan” from an IRA — but you can do a “rollover” if you replace money into that IRA or another one, within 60 days. That is what you are describing. And if you follow the rules, it will not be considered a taxable withdrawal, and will not incur a penalty (if you’re under age 59-1/2).
If you’re over that age, you can take penalty-free withdrawals at any time. But you will owe ordinary income taxes on the withdrawal unless the money is returned within 60 days, following the same rollover rules.
Not a good idea to fool around with this though, as they will send you forms re the withdrawal, and tax notices. And it can get complicated.
