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I read somewhere that I can "borrow" from my IRA account without having to pay taxes, as long as I replace the money within 60 days. Is that option for real? I may need to do this to cover a short-term emergency. Can someone with an experience on this situation please advice?

What you are talking about is a "rollover." Once per 12 month period you can withdraw funds from an IRA and replace them within 60 days without tax consequence. Miss the deadline and you have a taxable distribution that cannot be replaced. Assuming you're under 59 1/2, the 10% premature distribution penalty would also apply.

You can read about rollovers in IRS Publication 590.

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Phil Marti

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