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Greetings, Jeffrnahar, and welcome. You asked:

<<I am about to buy a business and want to use my IRA funds to do so however I can not borrow against them from schwab where they are resident.Is there a way for me to use the funds without paying a penalty?>>

No, there is no way you may use your IRA funds as collateral for a loan. Such use is expressly prohibited by law.

<<Perhaps I can transfer the funds to another account and then borrow against it or could the business itself be a qualified plan ?>>

No, there is no way you can do either. Again, using the funds as collateral is against the law. Investing in your own business within the IRA or a qualified retirement plan is also against the law. That's considered a prohibited transaction.

The only way you may use these funds in the purchase is to take the money from the IRA, pay the income taxes due and pay a 10% early withdrawal penalty on top of that if you're younger than age 59 1/2.

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