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Borrowing from Roth


Guest jeable
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Guest jeable

My husband and I are retired and we both have been rolling over our 401Ks to Roth accounts. We are both over 70 years of age.

My husband must have some expensive dental work. Can we BORROW the money from our Roth and then pay it back?

Would there be any advantage to borrowing from the 401K (not rolled over yet) or from the Roth?

Since we are no longer employed, we cannot add to these accounts and we want to retain the earning power of the Roth tax free.

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  • 4 weeks later...

One option you do have is that you can take money out of a Roth or IRA and return in before the time limit is up. The old limit was 60 days and I think that is still correct. So, if you expect to have some money coming in in the next two months, you could take funds from an IRA/Roth and than pay all or part of it back.

I don't normally recommend this because if you fail to hit the deadline, or anything goes wrong, the funds can't get back in unless you can make contributions.

You might look into a home equity, signature line or other short term borrowing option. Your dentist might accept a monthly schedule of payments.

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