Borrowing from IRA to buy rentals

[Sandra N.]

I want to borrow money from my IRA to buy a rental. It would be a loan bcuz I will put the money back after I refinance.

Would I be charged penalties/fees from IRA?

[George Blower]

Originally posted by @Michael Guay:

The government recently allowed citizens to withdraw up to $100,000 from their retirement accounts via hardship distributions (no 10% penalty that normally occurs from withdrawing before 59.5 years old)

https://www.fool.com/retirement/2020/03/29/coronavirus-relief-the-unique-way-tap-retirement-s.aspx

Assuming that you have been impacted by the virus in one of the enumerated ways and therefore qualify, you can take a penalty-free distribution (as well as waive the 20% withholding requirement) from your 401k (assuming that the employer allows it) anytime between 1/1/2020 and 12/31/2020. You may avoid the taxes if you deposit the funds in an eligible retirement plan (which includes an IRA) within "3 years and a day" of the date of the COVID-19 distribution (note: compare to a 60-day rollover). Please note that the account into which the funds are deposited must be the same type of account from which the funds were first withdrawn (e.g. withdrawal of pre-tax funds from a 401k could be deposited in a pre-tax IRA but not a Roth IRA - "like to like").