Using IRA funds to start a business
I have a client who is 55 years old. She is asking if it is possible to use IRA funds to start her own business without taxes or penalty. Is that possible?
I have a client who is 55 years old. She is asking if it is possible to use IRA funds to start her own business without taxes or penalty. Is that possible?
Permalink Submitted by Allen Broyles on Tue, 2014-01-28 17:40
I’m sorry. The question should read “without taxes or penalty”…
Permalink Submitted by Alan - IRA critic on Tue, 2014-01-28 17:43
A distribution would be taxable and subject to penalty since she is under 59.5. Another option that is more complex is the following, but client would probably need help to do it correctly: http://www.retirementdictionary.com/definitions/rolloversbusinessstartups