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72t income used for a loan

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Bydb

L1: 72t income used for a loan
Has anyone used the income from a 72t to aquire a loan? If so, how was it documented and/or presented to underwriters?
2019-01-04 22:48, By: db, IP: [107.142.142.163]

L2: 72t income used for a loan
No first hand knowledge, but I don’t see any reason for a lender to care whether there is a 72t in place or not. The IRA itself cannot be used as security for a loan as that is a prohibited transaction. If the underwriter wanted to compare the effects of a 72t plan to an IRA outside such a plan, they might look at the distributions as a positive, but also consider that busting the plan if more funding is needed to be a negative since the IRA owner will not want to generate the retroactive penalty and interest.
2019-01-04 23:39, By: Alan S, IP: [72.24.226.251]

L3: 72t income used for a loan
Thanks, that explains things. I’ll have to do done more research on why that’s prohibited. Seems unfair to me.
2019-01-15 18:22, By: db, IP: [107.142.142.163]

L2: 72t income used for a loan
When I applied for a mortgage, the loan officer at the credit union coded the 72(t) income as pension۝, which is not really correct, but I was not going to question it, since the loan was approved.
2019-01-05 03:46, By: NotSoOld, IP: [2606:6000:4441:5300:b064:afd0:9d8e:126c]

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