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Can I take a loan from my IRA?

3 minute read

Neither Roth nor traditional IRAs allow you to take loans, but you can access money from an IRA for a 60-day period through what's termed a "tax-free rollover." As long as you put the money back into the same or a different IRA within 60 days, your withdrawal won't be subject to taxes/penalties and can continue to grow tax-deferred.

Rollover limitations and exceptions

You're limited to one rollover from an IRA to another (or the same) IRA within a 12-month period, regardless of the number of IRAs you own—this includes SEP, SIMPLE, traditional, rollover, and Roth IRAs. However, trustee-to-trustee transfers between IRAs aren't limited and rollovers from traditional IRAs to Roth IRAs (conversions) aren't limited.

You can't roll over all IRA distributions. Specifically, required minimum distributions and distributions of excess contributions and related earnings aren't eligible to be rolled over once removed.

For more information about the rollover rules, go to or consult a tax advisor.

You must generally make the rollover contribution by the 60th day after the day you receive the distribution from your traditional IRA or your employer's plan. Vanguard interprets the trade date of your distribution as the day you receive your distribution. You may recontribute the total amount of the distribution in one lump sum or in multiple increments as long as they're all within the 60-day period. You don't have to recontribute the full amount. (See the link below for additional details.)

If you qualify for an automatic waiver you can complete a rollover beyond the 60-day period. Since 2016, you can also self-certify your eligibility to complete a late rollover.

Details are provided at

60-day rollover rule

This rule states that any amount taken from a Roth or a traditional IRA that you don't reinvest within 60 days, including amounts withheld for taxes, is considered a distribution. Only one distribution is eligible for the 60-day rollover.

Roth IRA withdrawals

Withdrawals of your Roth IRA contributions are always both tax-free and penalty-free. But if you're under age 59½ and your withdrawal dips into your earnings—in other words, if you withdraw more than you've contributed in total—you could be subject to both taxes and penalties on the earnings portion of the withdrawal.

Traditional IRA withdrawals

Withdrawals of your traditional IRA contributions before age 59½ will result in a 10% federal penalty tax plus regular income tax on the entire withdrawal.*

Qualifying exceptions

You can find more information about IRA withdraw rules and guidelines here.

*If you've made nondeductible (after-tax) contributions to your traditional IRA, a portion of your distribution may not be taxable.

You may wish to consult a tax advisor about your situation.