60 day withdrawal and return rule
Traditional IRA account owner under age 59 wishes to withdraw funds for temporary use and return them within 60 days. Is there any IRA regulation or ruling that limits how the account owner can use the funds? This is not an inherited account.
Permalink Submitted by Alan - IRA critic on Tue, 2014-06-03 20:18
The IRA owner can use the funds for whatever they want. But if the funds are actually used instead of just sitting in a bank account awaiting rollover and the funds are not rolled over by the deadline, it will be difficult to secure an IRS letter ruling allowing extension of the 60 day deadline. And starting next January, only one such 60 day rollover will be allowed for all IRA accounts instead of one per IRA account.