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I'm about to (finally) start a full-time permanent position. I will, of course, be contributing to my IRA, and my employer matches up to 10% of my salary.

I have heard that one can borrow from an IRA and I am wondering what the mechanics of this are. I am hoping to borrow from the IRA to pay off credit cards. Specifically, I had heard that when you borrow from an IRA, the interest that you pay is paid into the IRA, so really it works as if you were saving more money than you might otherwise.

Is this correct? It seems too good to be true.. If so, what would be the reasoning for borrowing money any other way?
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