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#3
01-02-2005, 09:22 PM
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 Re: Borrowing from a SEP IRA Will wrote: - quote - > As I understand it, you can borrow from a SEP IRA once each
Since you may NOT borrow from an IRA, this temporary> year if you pay back within a sixty day period. withdrawal and payback within the days is not a loan. But can do, yes. - quote - > But unlike
Nope. You take the money, and run. well, take the money,> a 401(k), you cannot do any long-term borrowing from a SEP > IRA. If you withdraw from a SEP IRA, hold the money for > more than sixty days, and pay the penalties due on holding > that money, is there any way you can at a later date at > least get the money returned back into the SEP IRA? pay the taxes and THEN run. The deed is done. Just get to work again and start to contribute again. Happy New ChEAr$, Harlan Lunsford << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#2
01-02-2005, 09:02 PM
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| Re: Borrowing from a SEP IRA "Will" <DELETE_westes[at]earthbroadcast.com> wrote: - quote - > As I understand it, you can borrow from a SEP IRA once each
No.> year if you pay back within a sixty day period. But unlike > a 401(k), you cannot do any long-term borrowing from a SEP > IRA. If you withdraw from a SEP IRA, hold the money for > more than sixty days, and pay the penalties due on holding > that money, is there any way you can at a later date at > least get the money returned back into the SEP IRA? -- David M. Woods, EA, ChFC, CLU Woods Financial Services Norwood, MA 02062 www.woods-financial.com << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#1
01-02-2005, 08:24 PM
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| Re: Borrowing from a SEP IRA "Will" <DELETE_westes[at]earthbroadcast.com> wrote: - quote - > As I understand it, you can borrow from a SEP IRA once each
NO.> year if you pay back within a sixty day period. But unlike > a 401(k), you cannot do any long-term borrowing from a SEP > IRA. If you withdraw from a SEP IRA, hold the money for > more than sixty days, and pay the penalties due on holding > that money, is there any way you can at a later date at > least get the money returned back into the SEP IRA? << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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01-02-2005, 08:05 PM
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| Re: Borrowing from a SEP IRA Will wrote: - quote - > As I understand it, you can borrow from a SEP IRA once each
Technically, "borrowing" from an IRA is a prohibited action> year if you pay back within a sixty day period. But unlike > a 401(k), you cannot do any long-term borrowing from a SEP > IRA. If you withdraw from a SEP IRA, hold the money for > more than sixty days, and pay the penalties due on holding > that money, is there any way you can at a later date at > least get the money returned back into the SEP IRA? (as is using the IRA funds as collateral for a commercial loan). However, the Code does allow you to make a "rollover" (where you receive the cash) once in any 12-month period. The "rollover" (back to the original IRA or to a different custodian) within the 60 day period that begins on the date you receive the money. Miss the 60-day deadline and you have made a taxable withdrawal from the IRA, with no provision available to redeposit the funds into a tax-deferred account. If under age 59-1/2 you may also be charged a 10% early withdrawal surtax on the funds. << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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#-1
12-31-2004, 03:27 PM
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| Borrowing from a SEP IRA As I understand it, you can borrow from a SEP IRA once each year if you pay back within a sixty day period. But unlike a 401(k), you cannot do any long-term borrowing from a SEP IRA. If you withdraw from a SEP IRA, hold the money for more than sixty days, and pay the penalties due on holding that money, is there any way you can at a later date at least get the money returned back into the SEP IRA? -- Will << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
| Tags |
| borrowing, ira, sep |
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