Borrowing Against my IRA

You can’t borrow money from your IRA and you can’t use your IRA for collateral in a loan. We get a lot of searches from people who want to know “Can I borrow from my IRA” and the official answer is no, you can’t.  However, there is a bit of a loophole that will let you take a 60 day loan using your IRA money.

The government allows you to move your IRA from one place to another. Once you take it out of one account, you have 60 days to put it back in another without paying any type of fee. During those 60 days, you can do whatever you want to with the money.  However, make sure you can put it back before the deadline is up or you will be subject to normal tax as well as an additional 10% fee.

Doing this isn’t really recommended and there are usually better ways to get a loan, but it is possible–even if it is unwise.