No. of Recommendations: 0
The main problem I see is that the Roth IRA is essentially a retirement vehicle, and it is not expected that you withdraw the money until you are 59 and a half, BUT you can take an amount equal to your contributions anytime without tax. That's good if the account makes money; the profits may be left in the account and will enjoy compounded growth over the years. That is, if everything works out.

OTOH, if the account loses money, then you may not be able to repay the loan. Worse, you will not be able to deduct your losses on your income tax return.

For more info on Roth withdrawals, see: http://www.obliviousinvestor.com/roth-ira-withdrawal-rules/

culcha
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