The Risk of Making ‘Loans’ From an IRA
Sep 1, 2016
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By Denise Appleby, MJ, CISP, CRC, CRPS, CRSP, APA
Taking a rollover from an IRA to loan it to someone else is a prohibited transaction that can result in the entire IRA balance being treated as a distribution—especially if you miss the 60-day rollover deadline, as this recent IRS case proved.