I take out IRA money for 60 days?
I have an IRA with $15,000 not invested. I want to put that money
into another investment account. My adviser says it's OK, providing
I return it to my IRA account in 60 days or less. He says there's
no penalty or tax if I do it this way. Is this 60-day rule for real?
I am not sure you and your adviser are on the
same page. First off, I'm not sure why you would have IRA money
that is not invested. At a minimum, it should be in a money market
If you want to put money from an IRA into another
investment account, you only need to see if that investment can
be made by an IRA. It wouldn't be very productive to move money
from your IRA for a 60-day investment, now would it? An IRA can
be invested in most traditional investments, so unless you're looking
at something exotic (such as rare stamps, artwork or fine wine),
I'm sure you can move that money over in a direct rollover.
A direct rollover means that your current account
is transferred over directly to the custodian of the new investment.
Usually, this is handled by the new custodian of the account. While
your adviser is right that you can withdraw your funds for 60 days
without paying income tax or penalties, it doesn't sound like that
is what you really have in mind.