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Author: bonniekunkle Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75799  
Subject: Loan against Roth IRA Date: 10/27/2000 9:46 PM
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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? Most of my other investments are in tax deferred accounts and I will be hit with a tremendous tax bill. I am still working but will probably retire next year. Help! Any suggestions you can give me will be appreciated. My son has just gotten his loan approval and now I need to get the downpayment together as I promised him I would after his loan was approved. Will appreciate any ideas as to the best way to do this. Thanks.
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Author: rjm1 Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 25810 of 75799
Subject: Re: Loan against Roth IRA Date: 10/28/2000 9:17 AM
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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? Most of my other investments are in tax deferred
accounts and I will be hit with a tremendous tax bill. I am still working but will probably retire next year. Help! Any
suggestions you can give me will be appreciated. My son has just gotten his loan approval and now I need to get the
downpayment together as I promised him I would after his loan was approved. Will appreciate any ideas as to the best
way to do this. Thanks.


Go to your local bank etc. and get a loan based on your net worth.



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Author: JAFO31 Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 25837 of 75799
Subject: Re: Loan against Roth IRA Date: 10/29/2000 10:43 PM
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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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Author: BGPenhollo Two stars, 250 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 25856 of 75799
Subject: Re: Loan against Roth IRA Date: 10/30/2000 1:54 PM
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You can collaterallize 401K's, IRA's,nor 403B's.

If you have a 401K, most firms will let you borrow from it and pay yourself back. Many firms do so at low rates - of course the rate you set will be the rate or return you get on the loan.

Good Luck.

BGP

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