The short answer is no.
The IRS treats a regular loan from an IRA as a “prohibited
transaction”. This means that if you
“borrow” funds, the amount you receive will be taxable income at ordinary
income rates and subject to a 10 percent penalty if you are under 59 ½ (unless one of
the tax law exceptions applies).
The tax law allows you to use IRA funds if
you put the same amount back in your IRA within 60 days. It doesn’t have to be the same money or even the same IRA. Warning: Missing the deadline for repayment makes the amount taken
out taxable income at ordinary income rates and subject to a 10 percent penalty if
you are under 59 ½ (again, unless one of the exceptions applies).
Like any good CPA, I need to add a
disclaimer: Unfortunately, it is
impossible to offer comprehensive tax info over the Internet, no matter how
well-researched or written. And
remember, I love my readers, but having me bookmarked on your computer doesn’t
make you a client: Before relying on any
information given on this site, contact a tax professional to discuss your