can money be borrowed from retirement funds

[Frank Yaccarino]

Can or is it advisable to borrow from a retirement account to do a deal?   If yes, to whom is the interest payed to? would it be to my retirement account? I need capitol to finance my first deal. Is it possible to do this and borrow from other sources to finance my first deal? or is it advisable to borrow at all to finance a first deal?

[Carl Fischer]

@Frank Yaccarino

To borrow funds from your retirement account, you have 2 main options.

1. A 60 day rollover - you take a distribution from your IRA or 401(K) and you have exactly 60 days to put it back into a qualified account. There are some risks and rules, if you are interested in this method, I recommend you seek advice from your accountant or tax advisor to ensure it is done right.

2. You can take a personal loan from your 401(k) - This is only if your 401(k) plan allows for it. There are limits on the loan amount.

Another Idea you could consider, is investing in the deal with your IRA. This is done with a self-directed IRA (SDIRA). This type of IRA allows you to invest in things like real estate, private lending and syndications, while still growing your retirement funds tax free or tax deferred. What is your involvement in the deal? The IRS has some specific people and entities that SDIRA is prohibited from investing in.