How to Do a Temporary Withdrawal From an IRA

By: Beth Rifkin

Rolling over an IRA account can give you temporary access to cash.

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IRAs, or individual retirement accounts, have strict restrictions in place by the IRS regarding early withdraw. Unlike 401(k) plans, you cannot take a loan from your IRA account. However, taking a rollover, where you withdraw the funds from one IRA and then deposit them into another, is allowed. You have 60 days to redeposit the funds to another IRA account. During the time that the money is in your possession, you may do with it as you please.

Step 1

Check that you have not done a nontaxable rollover in the last year. IRA rollovers of this sort are only allowed every 12 months.

Step 2

Request a rollover from the financial organization that manages your IRA account. Executing a rollover usually requires filling out one or more forms, which are provided to you by the financial institution. Each management company may have slightly different forms or procedures for executing a rollover.

Step 3

Withdraw the money. The money can be in your possession for up to 60 days without incurring any taxes or fees. Use the money as you like for the two-month time period.

Step 4

Redeposit the money into an IRA account by the 60-day limit. Failing to do so will cause the account to be treated as a withdrawal, and you will be responsible for paying taxes and fees if you are under the age of 59 ½.


  • Consult a personal finance or retirement expert to help you with the IRA rollover so that you understand the procedures and risks involved. The more educated you are about the process, the less chance you have of making costly mistakes.

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About the Author

Beth Rifkin has been writing health- and fitness-related articles since 2005. Her bylines include "Tennis Life," "Ms. Fitness," "Triathlon Magazine," "Inside Tennis" and others. She holds a Bachelor of Business Administration from Temple University.

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