IRA AS COLLATERAL FOR LOAN
I want loan from bank or brokarage house can i use IRA account as collateral. i want to use only 10% to 20% of IRA as collateral and does not want to withdraw money from IRA
I want loan from bank or brokarage house can i use IRA account as collateral. i want to use only 10% to 20% of IRA as collateral and does not want to withdraw money from IRA
Permalink Submitted by Alan - IRA critic on Thu, 2022-01-06 15:09
No, using IRA funds as security for a loan is a prohibited transaction that would result in immediate taxable distribution of the IRA account as of Jan 1 of that year. (Pub 590 B, p 21).
Permalink Submitted by gautam SHAH on Thu, 2022-01-06 16:08
Thank you Alan . your answers are always on money and i appreciate and value your opinion.