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.

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.

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

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