SD IRA legality issue

[Steven Parks]

My friend and I both rolled our 401 K's into SD IRAs. To get the cash out of these IRAs, can he loan me his IRA and I loan him mine and then cash them out, due to the fact we aren't prohibited members?

[Dmitriy Fomichenko]

@Steven Parks

IRA and 401K are considered "retirement accounts" and designed to provide you with benefits during retirement, not now. If you need cash now you could take a distribution with applicable taxes (and penalties if under 59.5 years old).