Retirement account loan agreements

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L1: Retirement account loan agreementsWondering if anyone knows whether it is possible to establish a loan agreement to yourself for the purposes of taking and repaying a loan from your IRA. I know it is possible in the venue of employer plans (401(k)) but I am having a hard time locating any distinction for the IRAs. Looking to access $50,000 for 1st time home purchase from recently rolled over 401(k) to IRA. I know I can get the $10,000 penalty free but I am interested in the full amount and would like to replenish it thereafter. Thank you ahead of time for any help. Joe2009-02-02 20:40, By: Joe, IP: []
L2: Retirement account loan agreementsShort answer… NO. Loans are no allowed in an IRA.2009-02-02 20:47, By: Gfw, IP: []

L2: Retirement account loan agreementsGfw is absolutely correct. You cannot borrow from an IRA. You can distribute money from an IRA, however. Such distributions will be taxed as ordinary income in the year that they are taken. Additionally, any distributions taken prior to age 59.5 will have a 10% early withdrawal penalty taxadded on, unless you qualify for one of the exceptions.People who want to borrow from their 401k plans do so while they are still employed. The borrowed money is then paid back via payroll deductions. If you separate from service, these loans become payable immediately because you no longer have a stream of pay checks from which to collect the loan payments.2009-02-03 05:43, By: Ed_B, IP: []

L3: Retirement account loan agreements2009-02-03 09:57, By: Joe, IP: []