Down Payment - Rollover IRA or HELOC

[Levi K.]

Hello BP experts,

I hope you had great holidays.

I am facing the following situation:

I need to put 25% for my next investment. I have some savings in my bank. However, the rest of the down payment can come:

1) HELOC (need to wait 30 days for a new limit)

2) Rollover IRA (used to be 401k, after I left the old job, I have rolled the money to IRA and since then I don't contribute anything to the plan.)

My questions are:

A) Should I just withdraw the money from the IRA and pay the penalties and tax to IRS (one time deal).?

In any way the money are just sitting in the IRA in the mercy of the market)

OR

B) Should I return the money back to the IRA using my HELOC?

I know I can "withdraw money" from IRA and if the money are returned with 60 days - no penalties.

The only way I can return the money, is from HELOC (assuming the bank will increase my limit, since the my house went up in value since last time I did the paper work).

The problem that I have with this, is that HELOC I am paying interest and principal. This is like I have borrowed money from my IRA with interest and principal.

C) Any other ideas? Suggestions?

Regards,

Levi

[Account Closed]

I don't trust the stock market....only turbo tax and the IRS