How to Borrow From an IRA Rollover

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    • 1). Verify you have not rolled money into your rollover IRA in the past year. The IRS only allows one rollover per calendar year to or from any specific IRA rollover account.

    • 2). Withdraw the amount you want to borrow from your rollover IRA. To take money out of any type of IRA, you typically have to file an IRA distribution form with the financial services company holding your IRA. Since you will ultimately replace this money in your IRA, do not have any taxes withheld from your distribution.

    • 3). Use your funds for up to 60 days. While you can't technically take a loan from your rollover IRA, you can withdraw money from it without tax or other financial repercussions for 60 days.

    • 4). Return the money to your rollover IRA within 60 days. The IRS requires rollovers to be completed within 60 days. While the intent of the rule may have been to ensure that money transferred from one IRA to another is moved within the 60 days, there is no rule preventing you from "transferring" your IRA money back to the same IRA.

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