[Lisa]

Advice needed. I pulled money from my IRA, now I wanted to pay it back under the 60 day rule, using funds from a work loan through my 401k.

My money lady said IRS only allows one 60 day payback per year that i already used up my one time.

What should I do to help offset the tax penalty on the pulled money! Yikes this is gonna hurt come tax time

[Lewis]

Is the once a year restriction with the IRS or with your brokerage?

If it’s your brokerage, then open an acct at another brokerage, then transfer to your preferred IRA next year.

[Karl]

Hopefully you can work to establish a bigger cash reserve, but short of selling any looser stocks to loss harvest to offset the gain, not much you can do.

[Hoffman]

I’m not sure I follow? You borrowed from your Ira. And you want to borrow from your 401k to pay back your Ira?

[Rebecka]

Tough spot, but you’ve got a few options:
See if your situation qualifies for a hardship exception.

Boost withholdings now to lessen the penalty later.
Offset with any capital losses you may have.

A tax pro might help you find other deductions or credits.

Out of curiosity; how much did you pull and what’s your tax bracket? That could help clarify the impact

[Author]

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