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You cannot borrow from any kind of IRA. If you take money from an IRA and redeposit it in an IRA within 60 days, that's a rollover. On the 61st day the distribution is a done deal.

Good council, but while he can't borrow from the Roth, after a certain time can't he withdraw his deposits without penalty? So given:

The early withdrawal penalty does not apply to distributions that:

Are used to pay the costs of a first-time home purchase (subject to a lifetime limit of $10,000).

Are used to pay for the qualified expenses of higher education for the IRA owner and/or eligible family members.

Evan would have to take the money out of the Roth to purchase the home, leaving some of his other funds that would have been earmarked for this purpose to create an efund. This of course permanently removes the funds from the Roth. Or could he use the Roth funds to pay back student loans if any were around? Does paying student loans qualify as exception 2?

Further, Evan could look at establishing a line of credit when he gets his mortgage, assuming he qualifies for the added debt, or see if his family is secure enough to provide him with a short term emergency loan if something came up. I would rather our kids touch base with us to discuss the potential for an emergency loan than tap their Roth.

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