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Originally Posted by Finance dummy
First post so if this has been covered before I apologize. I need some cash that I can pay back within 60 days. I heard that you can take money out of your IRA and put it back in as long as you do it within 60 days. Can somebody tell me exactly how you go about doing this?
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I know that if you are transferring IRA funds from one company to another and have the check sent to you instead of doing a direct rollover, you have 60 days to complete the rollover before it is counted as a distribution, so I think that's what you are referring to. I'm not sure if you can take the money out of your current company and send it back to that same company within 60 days. I would call your current IRA provider and ask.
One warning, though. When the company pays the money directly to you, I believe they withhold 20% for taxes but you need to replace the full amount, so you'd have to make up the 20%. For example, if you tell them to cash out $10,000, they will send you a check for $8,000. To replace it, you'll have to send back $10,000. Then when you file your taxes, you'll account for that extra $2,000.