60 day loan from IRA
Posted: 16-May-2019 1:42pm
Taxpayer wants to distribute out 20k from his IRA at a major brokerage house
and then within 60 days return the money back to the IRA so nothing is taxable.
Client and I called the brokerage house and they alert us that the 60 days is really for
rolling over the IRA money and not to take as a loan for personal use;
that they are seeing the IRS crack down on this more and we should be careful.
I've never seen or heard of an issue where you are precluded from once a year borrowing
funds from your IRA and then contributing the funds back within 60 days to avoid
being taxable.
Curious if anyone out there has seen the IRS come to a client and say the above issue is taxable.
and then within 60 days return the money back to the IRA so nothing is taxable.
Client and I called the brokerage house and they alert us that the 60 days is really for
rolling over the IRA money and not to take as a loan for personal use;
that they are seeing the IRS crack down on this more and we should be careful.
I've never seen or heard of an issue where you are precluded from once a year borrowing
funds from your IRA and then contributing the funds back within 60 days to avoid
being taxable.
Curious if anyone out there has seen the IRS come to a client and say the above issue is taxable.