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bonniekunkle: "I promised to give my son the down payment on a home. When the market was up I felt it was no problem. Well, now it has tanked and my available cash has also. I am wondering if I can borrow against my Roth IRA. I am 70 years old - 70 1/2 actually. However, I converted from a traditional IRA 12/98 and spread the taxes out over four years. Is there any way I can do this? Can I use it as collateral or something?"

I am about 99% certain that you canot use any IRA as collateral for a loan, or otherwise pledge or hypothecate it.

I am less certain, but I believe that withdrawals before paying all the taxes for those who elected 4 year spreading can acclrate the tax due date; last, I am not up on the 5 year rule.

Maybe TMFPixy or TMFexRO will wonder by; otherwise you may wish to rephrase your query and post on the Tax board, where TMexRO and TMFTaxes are sure to see it.

Hope this helps. Regards, JAFO
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