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  1. #1
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    ?? About IRA Withdrawal

    I'm going to help my brother buy a car. He's 5-grand short, so to get $5,000, I'd like to get a withdrawal from my IRA, then pay it back within 60-days so I don't incur any penalties.

    1. I this still allowed in tax year 2013?
    2. Is that 60-calendar days, or week days from the date of withdrawal?

    Thanks for any legit replies!




    "..The way it works is this: You take the money out of your traditional or Roth IRA and then replace the cash (the same amount that you withdrew) within 60 days. Make sure to put traditional IRA money back into a traditional IRA, and put Roth IRA money back into a Roth IRA. You must also comply with the one-year rules explained below. If you do these things, the withdrawal of IRA money and subsequent redeposit is treated as a tax-free rollover transaction -- even though it's effectively the same as taking out and repaying a short-term loan from your IRA.


    "We are first and foremost an educational institution that values integrity, honesty and treating others with fairness and respect".

    -ISU President Gregory Geoffroy; circa May 2003.

  2. #2
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    Re: ?? About IRA Withdrawal

    I used to work in the IRA department at a mutual fund company and I would see people do this fairly often. It was 60 calendar days and I hadn't heard of it being disallowed in 2013, but I can't say for certain.



  3. #3
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    Re: ?? About IRA Withdrawal

    I would say your brother can't afford the car and you cant' afford to help him if you have to use IRA funds.


    I was a victim of a series of accidents, as are we all.

  4. #4
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    Re: ?? About IRA Withdrawal

    I never knew you could do this. I learned something today.



  5. #5
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    Re: ?? About IRA Withdrawal

    Quote Originally Posted by bos View Post
    I never knew you could do this. I learned something today.
    It's like free money for 60 days!



  6. #6
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    Re: ?? About IRA Withdrawal

    Just curious why you don't have $5000 now but think you will within 60 days.

    Yes, I would like to make value judgments regarding your spending/savings habits.


    “Science investigates; religion interprets. Science gives man knowledge, which is power; religion gives man wisdom, which is control. Science deals mainly with facts; religion deals mainly with values. The two are not rivals. They are complementary.”

    Martin Luther King Jr.

  7. #7
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    Re: ?? About IRA Withdrawal

    Quote Originally Posted by 3TrueFans View Post
    It's like free money for 60 days!
    Plus, you can just take the money straight to the casino, double it, and THEN pay it back.

    Sounds like a win-win if ya ask me!



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    Re: ?? About IRA Withdrawal

    Maybe you both have tax money coming to pay it back? Better file early if that is the case.



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    Re: ?? About IRA Withdrawal

    Quote Originally Posted by kilgore_trout View Post
    I would say your brother can't afford the car and you cant' afford to help him if you have to use IRA funds.
    Yeah why can't he (brother) finance the $5000?


    I'd agree with you, but then we'd both be wrong.

  10. #10
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    Re: ?? About IRA Withdrawal

    1. If your brother is $5000 short for a car then he either needs to buy a $5000 cheaper car or wait and save up $5000.
    2. If you have to take money out of an IRA then you are in no position to be helping him financially.



  11. #11
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    Re: ?? About IRA Withdrawal

    We here at CycloneFanatic don't answer the questions you have. We answer the questions you should have.


    I'm on Twitter too: Tre4ISU

    Or so I have read.

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    Re: ?? About IRA Withdrawal

    Quote Originally Posted by Tre4ISU View Post
    We here at CycloneFanatic don't answer the questions you have. We answer the questions you should have.
    Well, duhhh! What do you expect from experts???



  13. #13
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    Re: ?? About IRA Withdrawal

    Quote Originally Posted by Tre4ISU View Post
    We here at CycloneFanatic don't answer the questions you have. We answer the questions you should have.

    Teach a man to fish or some ****.



  14. #14
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    Re: ?? About IRA Withdrawal

    Quote Originally Posted by bos View Post
    I never knew you could do this. I learned something today.
    You learned something that was a really bad idea.


    They who can give up essential liberty to obtain a little temporary safety, deserve neither liberty nor safety. - Benjamin Franklin 1775

  15. #15
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    Re: ?? About IRA Withdrawal

    Quote Originally Posted by brianhos View Post
    You learned something that was a really bad idea.
    I knew you could take money out, but I never knew you could do it unpenalized if you pay it back in an allotted amount of time.

    The only time I would consider it would be if I was taking my money and running to a foreign country where the IRS couldnt find me.



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