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TaxTom, Internet Researcher
Category: General
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Can an IRA loan be partially repaid to a different IRA and

Resolved Question:

Can an IRA loan be partially repaid to a different IRA and still avoid penalty and tax on the amount repaid?
Submitted: 5 years ago.
Category: General
Expert:  TaxTom replied 5 years ago.

TaxTom :

Hello, You actaully can't borrow from an IRA, did you take a withdrawal from your account? How long ago? Thanks Tom

Customer: replied 5 years ago.
Actually, the money was drawn from a 401k, but we want return it to an IRA. The withdrawal date was Jan 19 this year.
Expert:  TaxTom replied 5 years ago.
Hello again, No it has to be repaid to the 401k. depending on your plan you may then roll over the amount into an IRA. The advantage of the loan over the withdrawal is that you have a much longer period to put the money back and it doesn't become a problem unless you leave the job and you have 60 days to pay the money back without taxes and penalties. Thanks Tom
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