Permalink Submitted by Alan Spross on Tue, 2008-06-17 22:19
That’s a prohibited transaction, and your IRA loses it’s status as of January 1st of the year of such a transaction. The IRA would then be subject to tax and probably early withdrawal penalties as well.
Short answer then, is that you cannot use the IRA as collateral.
Permalink Submitted by Alan Spross on Tue, 2008-06-17 22:19
That’s a prohibited transaction, and your IRA loses it’s status as of January 1st of the year of such a transaction. The IRA would then be subject to tax and probably early withdrawal penalties as well.
Short answer then, is that you cannot use the IRA as collateral.