Recently, I had a client call in and inquire about borrowing against their IRA.
Borrowing is more commonly associated with 401k’s, 403b’s and cash value life insurance policies.
With IRA’s, “borrowing” or taking a short term loan on your IRA is not allowed.
You are allowed to withdraw money with a 60 day grace period to put the money back; it’s considered to be a 60 day rollover.
If not, you will be taxed and penalized (if under 59 ½) on the amount you took out.