looking for a loan

5 Replies

I have a client that is looking for  a $10,000 personal loan for less than 60 days.

He has a pension distribution that will pay back th loan but those funds will not be available until July 13th.

Any ideas other than the obvious about borrowing from thier bank or borrowing against IRAs.

Thanks

Originally posted by @Darren Eady :

They really should borrow against their IRA for a small loan amount like this without additional collateral.

There is no such option as borrowing from an IRA. The loan option is available with a 401k (assuming plan documents permit that) and the loan is limited to $50,000 or 50% of the balance, whichever is less.

@Nicolas Paez

Client can take a 60 day IRA rollover distribution and then roll the funds back to the same IRA or another IRA. However, make sure the client has not made any other 60 day IRA Rollovers in the last 12 months from any IRAs including , Traditional, SEP, SIMPLE and Roth as the one per 12 month 60 day rollover applies to all IRAs in aggregate.