60-day loan from IRA after starting a 72(T) withdrawal
I am currently taking systematic withdrawals from my IRA under the 72(t) exception. I need a short-term loan from this IRA (less than 60 days) and was wondering if this is allowable or would it jeopardize the systematic withdrawal.
Permalink Submitted by Alan Spross on Fri, 2008-08-08 22:47
If you have not used your one permitted rollover per 12 month period, you could withdraw the funds and roll them back within 60 days. You would then have to complete your 72t annual distribution by year end.
The above would not bust your plan, however it does endanger your plan somewhat it uses up your one permitted rollover per 12 month period, so the rollover would not be available to fix a different mistake later on. Having the rollover in reserve provides you with a safety valve in case either you or your custodian messes up along the way and rolling back distributions in excess of your annual amount is the only way to save your plan.
Therefore, if you need the fund bad enough, go ahead, but then be doubly careful about your 72t distributions for the next 12 months because you will not have a second rollover available.